| Thu 4 Oct 2001, 0:00 | | Barloworld / Ppc - To Create New Southern African |
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Barloworld Limited
ISIN Code : ZAE000026639
Share Code : BAW
Pretoria Portland Cement Company Ltd
Share Code: PPC
ISIN Code: zae000005559
International industrial brand management company Barloworld Limited, is to
create a new force in the logistics industry in southern Africa through the
acquisition of PPC Logistics (Pty) Ltd from listed subsidiary Pretoria
Portland Cement Company Limited (PPC). The purchase consideration is R145
million plus the value of net cash balances at 30th September 2001 of
approximately R20 million.
The effective date of the deal is 30th September 2001 and the purchase
consideration was determined following a valuation of PPC Logistics by
independent advisors Standard Corporate and Merchant Bank.
The transaction will not have a material impact on the earnings of either
Barloworld or PPC in the short term.
PPC Logistics will merge with Barloworld's existing logistics operation,
currently part of Barloworld Motor. The combined business will have an
annualised turnover of approximately R260 million and, employ 730 people. It
will operate under the name Barloworld Logistics (Pty) Ltd.
Commenting on the deal, Tony Phillips, CEO of Barloworld said, "We have been
quietly developing two southern African logistics operations - one in our
motor business and one in our cement and lime subsidiary PPC. By combining
the two we are creating a platform for Barloworld to develop a significant
business in southern Africa's fast growing logistics market."
John Gomersall, CEO of PPC and an executive director of Barloworld, will in
addition become chairman of Barloworld Logistics (Pty) Ltd.
Commenting on behalf of PPC, he said "Since its formation in 1996, PPC
Logistics has created value for PPC shareholders, both in terms of the cost
competitive distribution of PPC products and in terms of the value realised
on the sale of the company. PPC will however, continue to benefit from the
logistics management services provided by Barloworld Logistics. These
services will increasingly be offered to other Barloworld business units and
our growing external client base."
The new company has established contracts with a number of well respected
clients including: - Spoornet, Black Mountain (Anglo PLC), Corobrick,
Saldanha Steel, Columbus Stainless, PPC Cement, PPC Lime, and Tiger Brands
and is currently developing other opportunities across a wide front.
Paul Stuiver, until recently Managing Director of PPC Lime and also the PPC
executive responsible for its Logistics interests, has been appointed CEO of
the new business.
"We have a strong intellectual and capital base to expand both organically
and through acquisition. Our product and service offering will include a
full range of both third and fourth party logistics solutions and services.
The opportunities in the logistics industry are enormous and we are planning
for rapid growth once we have completed the merger," said Stuiver.
CONTACT DETAILS:
John Gomersall, Chief Executive Officer, PPC Limited
Tel: +27 11 488-1700
Email: jgomersall@ppc.co.za
Brian Steele, Chief Group Financial Manager, Barloworld Limited
Tel:(+27 11) 445-1300
Email: BrianS@barloworld.com
