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Clover and Nestlé South Africa announce new entity
CLOVER INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
Ordinary Share code: CLR
ISIN: ZAE000152377
Preference Share Code: CLRP
ISIN: ZAE000152385
("Company" or "the Group" or Clover)
CLOVER AND NESTLÉ SOUTH AFRICA ANNOUNCE NEW ENTITY
- Clover Waters to manufacture, distribute, market and sell Clover and Nestlés popular
water and ice tea brands
- Nestlés global number one water brand PURE LIFE to be produced by the new entity
- Nestlés Nestea® to be re-introduced in South Africa
- Brand presence to be increased through Clovers distribution network
[28] February 2013, JOHANNESBURG: Clover today announced the acquisition of Nestlé South Africas
Gauteng based Doornkloof property, bottled water manufacturing facility and water rights through a new
entity formed by Clover S.A. Proprietary Limited (Clover SA) and Nestlé, called Clover Waters (Pty) Ltd
(Clover Waters) (the transaction). As a result of the transactions, Clover Waters will also obtain the
right, by way of licence, to manufacture, distribute, market and sell bottled mineral water under Nestlés
Pure Life®, Valvita® and Schoonspruit® brands as well as ice tea under the Nestea brand. These brands
will complement Clover SAs Aquartz bottled water and Manhattan ice tea brands which will also be
manufactured, distributed, marketed and sold by Clover Waters.
The transaction is subject to the fulfillment of various conditions, including Competition Commission
approval. Once approved, the purchase consideration of R58 million will be settled through the issue of
30% of the shares in Clover Waters to Nestlé. Post-transaction, Clover SA will hold 70% of Clover Waters
and Nestlé 30%.
Clover and Nestlé believe that the transaction will unlock growth and shareholder value by providing a
broader platform to grow their position in the supply of bottled mineral water and ice tea. The synergies
will result in greater efficiencies and a more effective utilisation of resources.
In addition, leveraging Clovers extensive distribution network will improve the route-to-market for Nestlé
Pure Life® and Nestea® products and increase market penetration of these brands.
Johann Vorster, Clovers Chief Executive, commented: This partnership is in line with our strategy
to expand Clovers portfolio of value added and branded beverages products.
The combined entity created by this transaction will provide Clover with great opportunities
across a broader range of complementary products. In addition, it also allows us to realise
significant economies of scale by combining operations and leveraging off Clovers extensive
distribution network to further entrench the water and ice tea brands nationally.
For a local African player such as Clover to be entrusted with global brands including Nestlé
Pure Life® and Nestea® is an accolade that we are very proud of.
Nestlé has been in the bottled water business in South Africa for 14 years and Clover Waters will ensure
the continued growth of the Nestlé Waters brands and will re-launch the Nestea® brand in South Africa.
Sullivan OCarroll, Chairman and Managing Director of Nestlé South Africa, said: We have been present
in South Africa for almost 100 years and we continuously seek opportunities to improve our
efficiencies and brand presence. This partnership is aligned to our business objectives and will
allow consumers better access to our products.
Issued on behalf of Clover Industries Limited by:
College Hill +27 (0) 11 447 3030
Morné Reinders +27 (0) 82 815 1844
Frédéric Cornet +27 (0) 83 307 8286
FOR ENQUIRIES
Clover Industries Limited +27 (0) 11 471 1702
Johann Vorster Chief Executive +27 (0) 82 462 0083
Manie Roode Deputy Chief Executive +27 (0) 82 466 7848
Nestlé South Africa (Pty) Ltd +27 (0) 11 514 6799
Ravi Pillay Corporate Spokesperson +27 (0) 82 908 2580
1 March 2013
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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