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BIDVEST - ACQUISITION OF JOHN LEWIS

Release Date: 22/05/2001 09:30
Code(s): BVT
Wrap Text
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. -ENDS-

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