KAP International Holdings Limited - KAP Expands A
KAP
KAP
KAP International Holdings Limited - KAP Expands Automotive Interests
KAP INTERNATIONAL HOLDINGS LIMITED
Registration number: 1978/000181/06
JSE Share Code: KAP
ISIN: ZAE000059564
("KAP")
KAP EXPANDS AUTOMOTIVE INTERESTS
KAP has acquired Caravelle Automotive Holdings (Pty) Limited ("Caravelle") -
South Africa"s leading producer of loose lay carpet mats for the local
automotive market. Caravelle, which was established in 1982, supplies mats to
Motor Vehicle Manufacturers, the automotive aftermarket and is currently
developing an export market. A 7 600 sqm Midrand building in which Caravelle"s
operations are situated is also included in the acquisition.
Caravelle is well positioned to take advantage of both the growth in local
vehicle build and the increased sales of imported vehicles in South Africa. KAP
will utilise its existing marketing structures to increase Caravelle"s presence
in export markets. There are excellent synergies between KAP"s automotive trim
interests and Caravelle. The acquisition is a natural extension to KAP"s
automotive component range, particularly the interior trim and acoustic
insulation products. Caravelle also imports raw material, which can be sourced
from within the KAP group, minimising currency exposure risk and increasing
local content. In addition, KAP"s financial backing and ability to identify
technology partners will enable Caravelle to expand its product range and grow
revenue.
The purchase price will be settled through a combination of cash and KAP shares,
thereby encouraging the retention of Caravelle"s management who are an integral
part of the future plans for the business.
Paarl
26 June 2006
Date: 26/06/2006 02:14:11 PM Produced by the JSE SENS Department
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