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The Bidvest Group Limited - Acquisition By Bidvest Of Deli Xl
THE BIDVEST GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
Share code: BVT ISIN: ZAE000050449
Bidvest expands its foodservice interests into continental Europe
BIDVEST, the international services, trading and distribution group, today (15
July 2005) announced a major expansion of its international foodservice
interests.
The JSE-listed company has concluded an agreement to acquire Deli XL, the
leading foodservice player in the Benelux region, from the Netherlands-based
Ahold Group for a consideration of approximately 56.7 million euros, valuing
Deli XL at an enterprise value of approximately 140 million euros. Bidvest has
undertaken to ensure that at completion Deli XL will repay its net outstanding
intercompany debt to Ahold.
Bidvest`s foodservice interests comprise 3663 First for Foodservice, the market
leader in the United Kingdom, the leading foodservice businesses in both
Australia (Bidvest First for Foodservice) and New Zealand (Crean First for
Foodservice) and Caterplus in Southern Africa.
Bidvest Chief Executive Brian Joffe commented: `Europe is a strategic market
with growth opportunities in the foodservice industry. The acquisition of Deli
XL will complement our existing, highly successful foodservice business in the
United Kingdom and marks another step in the internationalisation of our
foodservice interests. Consolidation in the foodservice industry in the Benelux
region has started and Bidvest intends to partake in this process.
Deli XL provides a unique opportunity to acquire a market-leading European
foodservice business with sufficient scale to realise customer and purchasing
synergies.
Currently, Deli XL achieves poor returns. Once integrated into the Bidvest
foodservices division and with our management focus, we believe it has the
potential to contribute significantly to Group performance over time.
Deli XL holds an estimated 13% share of the Dutch foodservice market and an
estimated 4% share of the market in neighbouring Belgium. It is also a leading
provider of food products to the institutional market in Luxembourg. In 2004,
Deli XL generated sales of 819 million euros.
Deli XL`s customer-base of approximately 30 000 clients across the
institutional, catering and regional hospitality market segments have access to
a comprehensive range of 60 000 products served by its 2100 employees.
The transaction, to be funded from Bidvest`s banking facilities, is expected to
become effective in the third quarter of the year.
The agreement is subject to clearance from the European Union competition
authorities.`
ISSUED ON BEHALF OF: THE BIDVEST GROUP LIMITED
BY: CLEAR DISTINCTION COMMUNICATIONS
BIDVEST CONTACTS: Brian Joffe (Chief Executive)
Tel: (011) 772-8704
David Cleasby (Investor Relations)
Tel : (011) 772-8706
Mobile: 083 228 1810
CONSULTANCY CONTACT: Carol Dundas
Tel: (011) 444-0650
Mobile: 083 447-6648
Date: 15/07/2005 12:12:04 PM
Produced by the JSE SENS Department
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