| Thu 27 Jul 2006, 16:07 | | Iliad Africa Limited Concludes Two Further Acquisi |
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ILA
ILA
Iliad Africa Limited Concludes Two Further Acquisitions
Iliad Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code: ILA & ISIN: ZAE000015038
("Iliad" or "the company")
Press release
27 July 2006
ILIAD AFRICA CONCLUDES TWO FURTHER ACQUISITIONS
Iliad Africa Limited, the JSE-listed building materials supplier, has announced
the acquisition of Western Cape-based building materials supplier, Campwell
Hardware, as well as Modern Bathrooms, a business servicing the plumbing sector
In line with its stated strategic intent of growing its geographical presence,
the Campwell acquisition gives the Iliad group"s building materials division
access into the Cape market, complementing the existing operation in Somerset
West. Iliad will add value and expand the business through its expertise in both
the credit advancement and procurement disciplines. Funded from internal cash
resources and debt facilities, the acquisition will add 11 stores in the Western
Cape region.
The Campwell acquisition is subject to approval of the competition authorities,
the JSE and the completion of the due diligence process.
Ralph Patmore, chief executive officer of Iliad says, "Campwell Hardware is
predominantly a cash business, offering the full range of building materials,
from timber to hand tools. It is a dominant respected force in the Western Cape,
having operated for over 30 years. We believe that the family businesses under
the Campwell banner will particularly benefit from Iliad"s procurement power and
credit advancement expertise. In line with Iliad"s approach of owner-manager
business units, Patmore says the highly capable and experienced management have
been retained.
Iliad will purchase the assets and liabilities of the Campwell Hardware
businesses and incorporate these into a new entity, 25% of which will be sold
back to a consortium led by key existing management. The value of the
transaction is significantly higher than Iliad"s previous acquisitions, but
Patmore says Iliad is comfortable with the structure due to the very strong
growth opportunities and black economic empowerment credentials presented by the
Campwell Hardware businesses.
Patmore believes this latest acquisition is an excellent strategic fit that
supports the group"s stated intention of identifying opportunities for growth to
achieve its turnover target of R4 billion within the next few years.
Iliad has also acquired Modern Bathrooms, a Parow business that sources,
distributes and retails plumbing supplies and geysers for the plumbing market.
This follows Iliad"s earlier entry into the plumbing sector through the
acquisition of Gauteng-based Suncol. Suncol is focussed on serving the short
term insurance industry"s plumbing needs. Patmore says the Suncol strategy of
value-added solution and services for leading insurers is successfully being
rolled out in KwaZulu-Natal and now in the Western Cape.
In the competitive building specifications market, Iliad is already well
positioned in terms of black economic empowerment representation, with some 26%
of the group"s equity held by empowerment groups, including The Women Private
Equity Fund and Vunani. The Campwell Hardware acquisition bolsters Iliad"s BEE
component in the western Cape to well over 40%.
ENDS
PREPARED ON BEHALF OF ILIAD BY CATHY FINDLEY PUBLIC RELATIONS ON (011) 463-6372
OR EMAIL CATHY@FINDLEYPR.CO.ZA
Editor"s note: Iliad Africa is the JSE-listed building materials supplier and
holding company of leading brands in its sector: Ferreira"s, Builders Market,
Laeveld Bouhandelaars, Building Centre, Buchel, Design Hardware, W&B Hardware,
Suncol, Cachet International, Knob & Knocker, Citiwood, Chipbase, D&A Timbers,
and Q-Lite. Iliad operates in carefully-defined niche areas of the building
materials market - wholesale, ceramics, boards, ironmongery, plumbing and
lighting - to meet the different needs of the building industry and its customer
base. Prudent organic and acquisitive growth has catapulted Iliad from turnover
of R350 million at listing in 1998 to third place in the 2005 Top 100 company
survey (Sunday Times) with turnover of over R2,6 billion and some 3200 employees
in over 80 outlets countrywide.
Date: 27/07/2006 04:07:12 PM Produced by the JSE SENS Department
