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Iliad Africa Limited - Three new acquisitions for Iliad Africa
Iliad Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code: ILA
ISIN: ZAE000015038
Press release
THREE NEW ACQUISITIONS FOR ILIAD AFRICA
Iliad Africa Limited, the JSE-listed building materials supplier, has announced
three acquisitions which are expected to increase annual turnover by some 10% to
R2,4 billion and broaden its geographic footprint. These acquisitions were
funded from cash resources.
Ralph Patmore, chief executive officer of Iliad, says competition commission
approval has been granted for Iliad`s acquisition of Suncol. `This marks our
entry into the plumbing sector.` Gauteng-based Suncol is focused on serving the
short-term insurance industry`s needs relating to the supply of geysers and
related products. Patmore says the Suncol strategy of value-added solutions and
services for leading insurers will now be rolled out to KwaZulu-Natal and
Western Cape. In line with Iliad`s approach of owner-manager business units,
experienced management has been retained to enable Suncol to meet the profit
warranty in terms of the acquisition.
`To further strengthen our existing boards division, Iliad has acquired the well
established Western Cape business, Chipbase, subject to approval by the
competition authorities,` says Patmore. Chipbase operates five outlets in Cape
Town and one in George, focused on the value-added, order-driven segment of
board distribution to cabinet-makers and kitchen manufacturers. `Significant
synergies exist to combine the niche expertise within Chipbase with other Iliad
businesses such as Citiwood. This will allow us to roll out the order-driven
concept even further geographically.` Existing management has been retained to
meet the profit warranty.
Approval has also been received from the competition authorities for Iliad`s
acquisition of Cachet International, an importer of plumbing, tool and hardware
products, based in KwaZulu-Natal. `Cachet gives Iliad`s wholesale division
instant access to proven suppliers of quality product ranges sourced
predominantly from China. We have integrated B&B Distributors into Cachet
International to enhance the logistical capability of the business. This is the
backbone of our wholesale division which is positioned for exceptional growth in
2006.` Iliad is consolidating its wholesale operations in Gauteng, with
distribution facilities based in a centrally-located 11 000m2 warehouse.
Distribution facilities in KwaZulu-Natal will also be consolidated. The
intention is to expand the recipe to the Western Cape where the group has no
meaningful wholesale representation.
Patmore says these acquisitions are in line with the group`s stated strategy of
identifying opportunities for growth that could double turnover in the next five
years. `We have several other growth opportunities nearing finalisation which
support our strategy and will be internally funded.`
Patmore believes Iliad`s independently-verified black economic empowerment
credentials make it an attractive partner for smaller, independent, owner-
managed businesses. `Some 26% of Iliad`s equity is held by empowerment groups,
including Women Private Equity Fund, chaired by Wendy Luhabe, and Vunani, under
the leadership of Ethane Dube. This, together with our commitment to a
decentralised, highly market-focused structure that allows traders to trade, has
enabled us to build the group on a solid and sustainable platform.`
PREPARED ON BEHALF OF ILIAD BY CATHY FINDLEY PUBLIC RELATIONS ON (011) 463-6372
OR EMAIL CATHY@FINDLEYPR.CO.ZA
Date: 08/06/2005 10:00:23 A
Produced by the JSE SENS Department
