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Bidvest - Acquisition of the business of the French group Danel
The Bidvest Group Limited
("Bidvest" or the "Group")
Acquisition of the business of the French group Danel ("Danel")
Bidvest has acquired, with effect from September 5 2002, the bulk of
the assets of Danel, which prior to being placed in receivership, was
the largest business forms manufacturing and distribution operation in
France. These assets include properties, machinery, office equipment,
inventories, the intellectual property of Danel, and operations in
Belgium, Germany and the United Kingdom. The acquisition consideration
is EURO5.6 million (R58,2 million) plus the value of inventories, which
are subject to valuation as at the effective date. The transaction did
not encompass Danel`s debts. The purchase consideration will be settled
in cash.
Danel was placed into receivership on June 25 2002, as it was unable to
meet certain debt repayments after a history of struggling for the
capital resources to carry out necessary changes required to implement a
restructuring strategy.
Lithotech, the business forms operation of Bidoffice, and part of
Bidvest`s Commercial Products Division, has a similar business to that
of Danel. Lithotech will provide management expertise and will implement
its systems across Danel to reduce costs whilst exploiting the company`s
market presence and developing the range of solutions sold. The
acquisition has significant synergies between Lithotech and Danel with
opportunities to exchange products between their respective markets,
whilst jointly exploiting Bidvest`s African presence from both Europe
and South Africa. It is envisaged that Danel will, in time, become the
base for the distribution of Bidoffice products throughout Europe.
Bidvest has acquired the assets pertaining to nine of Danel`s eleven
production units, which will be redeployed and rationalised, retaining
the services of approximately 700 staff.
Bidvest believes, that due to the advent of the holiday season across
Europe, disruption to Danel`s client base through the receivership
process has been minimised.
Danel
Danel was the leading French and European business documents and related
services provider and was established in 1612 at the time of the birth
of the printing industry in Europe. Danel incorporates 11 manufacturing
sites and several distribution outlets throughout France, with sales
offices in the United Kingdom, Belgium and Spain. Danel currently
employes about 1,000 staff.
Danel is active in the production and distribution of customised
business stationery, regular mass mailing, registered letters,
administrative forms, financial instruments, identification cards and
tags, internal communication items, tracking documentation and gaming
tickets.
Danel`s document services consist of print on-demand and variable
printing, database management for on-demand and variable printing,
electronic form software, software for management of printing resources,
and document management outsourcing services.
For the year ended December 31 2001 Danel`s turnover was approximately
_189 million (R 2,0 billion) and had approximately 20,000 customers.
Brian Joffe, Chairman of Bidvest, commented:
"Whilst the internationalisation of the Commercial Products Division in
France has not been the first priority or focus of our offshore
expansion, the acquisition of the bulk of Danel`s assets provides a
unique, once off business opportunity for Bidvest.
We believe that with Danel`s business and customer base, our knowledge,
expertise and resources, combined with the operational synergies that
will be realised through this acquisition, will restore Danel to its
market leading position.
Danel will, in time, generate good cash flows and provide a platform
from which we can expand the Bidoffice product and service offering to
its clients, whilst providing Bidvest with another base within Europe to
export to, and from which to grow."
September 5 2002
Enquiries:
The Bidvest Group Limited Tel: + 27 (0) 11 772 8700
Brian Joffe, Executive Chairman
Jack Hochfeld, Investor Relations
David Cleasby, Investor Relations
College Hill Johannesburg Tel: + 27 (0) 11 447 3030
Nick Elwes
Robyn Hunt
Date: 05/09/2002 04:40:00 PM Supplied by www.sharenet.co.za
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