Massmart Holdings Limited - Massmart Acquires Servistar
MASSMART HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1940/014066/05)
Share code: MSM
ISIN: ZAE000029534
(`Massmart` or `the company`)
MASSMART ACQUIRES SERVISTAR
Massmart is pleased to announce the acquisition of the 14 store Servistar chain
of home improvement stores, subject to approval by the competition authorities.
Located in Kwa-Zulu Natal, Eastern Cape and Southern Cape, Servistar provides a
broad range of tools, equipment and supplies to the DIY, home improvement and
garden enthusiast.
Following shortly on the acquisition of the three store De La Rey chain, located
in the Western Cape, and the 34 store, national Federated Timbers (Feds) group,
this latest acquisition increases Massmart`s presence in the DIY, home
improvement and building supplies sector to 71 stores.
The three acquisitions will be housed in the Masswarehouse division of Massmart
and will generate sales approaching R2b in the year to June 2006 with profit
before tax margins exceeding 6%.
The three businesses referred to above will be acquired for a phased cash
consideration of R660m to R750m dependent on performance over the next two
years.
Following the ruling of the Competition Commission, not expected before the end
of May, the excellent management and staff of the acquired companies will retain
full responsibility and accountability for their performance, while realising
any benefits arising from their ownership by Massmart.
Johannesburg
9 March 2005
Sponsor
Deutsche Securities (SA) (Pty) Ltd
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