SUPER GROUP LIMITED - SUPER GROUP ACQUIRES MICA GR
SUPER GROUP LIMITED - SUPER GROUP ACQUIRES MICA GROUP
Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1943/016107/06)
ISN number: ZAE000011334)
Share code: SPG
(`Super Group`)
SUPER GROUP ACQUIRES MICA GROUP
Shareholders are advised that Super Group has reached an agreement in principle
to acquire the business and wholly-owned subsidiaries of Mica Plus Limited. The
acquisition is subject, inter alia, to the completion of a normal due diligence
process, requisite legal agreements being signed and approval being obtained, to
the extent necessary, of all the relevant regulatory and statutory authorities,
including the competition authorities.
Mica was founded 20 years ago by the current managing director, Anthony Hacker
with a vision of creating a voluntary trading group of the leading hardware
retailers in Southern Africa. Today the Mica Group has 195 member owned stores
with an estimated combined retail turnover of R2 billion. It is the leading
brand in the DIY market in South Africa and is also represented in UK, Namibia,
Botswana, Zimbabwe and Mozambique. Super Group is not acquiring the members`
stores, which are entrepreneurially managed by competent owners. Mica is a
profitable business whose intention is to become the first choice destination
for consumers in the DIY home improvement industry.
Super Group`s supply chain operational excellence, built up over the last 18
years integrated with our extensive technology platform can be relatively easily
deployed in new market sectors. The same basic principles apply to any industry
whether it is fast moving consumer goods, hardware, automotive parts, etc. Super
Group`s strength is in its ability to manage and optimize supply chains.
The hardware industry is very similar to the automotive parts industry, where
Super Group is the market leader, especially regarding product range, market
dynamics and supply chain. One of the cornerstones of Super Group`s automotive
parts business` success is the understanding that it is to a large extent a
supply chain management business. Its emphasis on optimizing its distribution
capabilities through the implementation of the group`s supply chain skills and
technology into a competitive advantage within the automotive parts industry has
contributed to its strong growth. Evidence of the significant benefits yielded
from this strategy is in the trebling of revenue and the five fold improvement
in this business` margins since it was acquired by Super Group five years ago.
Super Group believes that its success in the automotive parts industry can be
replicated in the hardware industry. In addition to cost savings, Super Group
has identified significant supply chain optimisation opportunities. Super
Group`s inventory optimisation and management skills will result in Mica`s 30
000 line items being added to Super Group Auto Parts current 130 000 line items.
Super Group will use its network design and optimisation strategies to
centralise supplier deliveries and improve service levels to the 195 stores,
similar to the existing strategy in its Automotive Parts business. The above
will enable Mica to leverage off Super Group`s existing physical, intellectual
and technology platforms built up over the past few years. Super Group`s
extensive supply chain capabilities and expertise will assist Mica in growing
its footprint in South Africa and sub Saharan Africa.
This acquisition will position Super Group as the market leader in a new supply
chain industry.
30 July 2004, Sandton, South Africa.
Sponsor: Deutsche Securities (SA) (Pty) Limited
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