AVI LIMITED - ACQUISITION OF DENNY MUSHROOMS (PTY) LTD
AVI LIMITED
(`AVI` or `the Group`)
Registration number: 1944/017201/06
Share code: AVI
ISIN: ZAE000049433
ACQUISITION OF DENNY MUSHROOMS (PTY) LTD
AVI has reached agreement with the owners of Denny Mushrooms (Pty) Ltd (`Denny`)
to acquire the company for an enterprise value of R197.5m less all interest
bearing debt as at the effective date, which was 29 May 2004.
Denny is the leading producer of fresh, canned and value added mushroom products
in South Africa, with a market share that exceeds 50%. It operates from three
world-class mushroom growing facilities in Gauteng, KwaZulu Natal and Western
Cape. The acquisition includes Denny`s subsidiary Dining In (Pty) Ltd, which
produces and markets value added soups and sauces packed in pouches, cans and
glass for leading South African retailers. Denny`s annualised turnover is
approximately R250m.
The acquisition of Denny is in line with AVI`s strategy of growing its range of
branded consumer products. More specifically, AVI is keen to expand its `fresh
to market` product offering in well-known brands. Denny is a strong national
brand in South Africa with a 40 year history of producing high quality
mushrooms.
The acquisition is subject to Competition Commission approval.
For more information on Denny, visit www.denny.co.za
Angus Band, Group Managing Director of AVI, said:
`This is a highly complementary addition to our business. The acquisition fits
with our strategy of growing our exposure to well-known consumer brands where
there is opportunity to expand the brand offering into other products through
innovation.`
Sandton
2 June 2004
Enquiries:
AVI
Angus Band, Group Managing Director Tel: (011) 779 2703
Simon Crutchley, Business Development Director Tel: (011) 779 2708
College Hill Investor Relations
Nicholas Williams Tel: (011) 447 3030
Tel: (083) 607 0761
Date: 02/06/2004 11:28:58 AM Produced by the JSE SENS Department
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