The Bidvest Group Limited
("Bidvest")
Acquisition of John Lewis
Bidvest, through its subsidiary Bidvest plc, has acquired the business of
one of Australia's largest foodservice operators John Lewis, for a purchase
consideration of approximately A$31 million for the goodwill and net assets
of the business, excluding the accounts receivable of approximately A$38
million. Bidvest plc propose financing the acquisition by way of debt.
The acquisition of John Lewis will significantly enhance Bidvest Australia's
position as the leading national foodservice distributor in Australia, with
estimated combined sales of over A$700 million (R2,9 billion) per annum, and
will lead to synergistic benefits, strengthened purchasing power and margin
improvement.
Since its acquisition by Bidvest plc in December 1995, Bidvest Australia has
grown sales from A$170 million in 1996, to an annualised A$400 million in
the current period, and has achieved national coverage in Australia through
organic growth and by acquisition. The acquisition of John Lewis will
further add to Bidvest Australia's coverage through its favourable
geographic spread, strong market position in Victoria, excellent exposure in
the Northern Territories and ability to provide critical mass in Sydney.
With the added synergies both John Lewis' performance and that of Bidvest
Australia are expected to be maximised in the near future.
Brian Joffe, Chairman, commented: "This acquisition enables us to achieve in
one transaction, the benefits that we would only achieve by doing many
smaller acquisitions, and is seen as an opportunity not to be missed."
21 May 2001
Enquiries:
The Bidvest Group Limited Tel: + 27 (0) 11 481 4129
Brian Joffe, Chairman
Jack Hochfeld, Group Corporate Finance Cell: +27 (0) 82 459 7051
College Hill Johannesburg Tel: + 27 (0) 11 447 3030
Linda Baker
Notes to editors:
Bidvest plc is a 78% held subsidiary of The Bidvest Group Limited. Bidvest
plc, is a distribution, trading and service business supplying the
foodservice, hospitality and leisure markets and is made up of 3663 First
for Foodservice (United Kingdom), Bidvest Australia and Crean Foodservice of
New Zealand (Australasia). Bidvest plc is the vehicle for The Bidvest Group
Limited to internationalise its foodservice activities.
The overall size of the foodservice market segment in which Bidvest
Australia operates is estimated at $2.4 billion.
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