HUDACO INDUSTRIES LIMITED - Announcement regarding the acquisition of All Trade and Sanderson

Announcement regarding the acquisition of All Trade and Sanderson

HUDACO INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1985/004617/06)
Share code: HDC & ISIN: ZAE000003273
(“Hudaco”)

  ANNOUNCEMENT REGARDING THE ACQUISITION OF THE TRADING ASSETS AND LIABILITIES OF
                   ALL-TRADE DISTRIBUTORS (PTY) LTD (“ALL-TRADE”)
   AND THE TRADING ASSETS AND LIABILITIES OF SANDERSON SPECIAL STEELS (PTY) LTD AND
                   SANDERSON NEWBOULD (PTY) LTD (“SANDERSON”)
                                (“THE TRANSACTIONS”)

Hudaco has acquired the trading assets and liabilities of All-Trade from 1 January 2016. The final
total consideration will depend on the average profits over the two year earn-out period, with an
initial payment of R16.0m and a maximum of R33.0m.

All-Trade is a distributor of specialised fasteners, including bolts, nuts, screws and other
consumables sourced from leading overseas and local suppliers. Its product range complements that
of FTS, an established operation, within Hudaco’s Rutherford division, that distributes rivets.

In addition, during 2015, Hudaco acquired the trading assets and liabilities of Sanderson. The final
total consideration will depend on the average profits over the three year earn-out period, with an
initial payment of R20.3m and a maximum of R45.0m.

Sanderson is a distributor of specialised engineering and tool steel, including solid, round, square,
hexagonal and hollow bar. In addition, Sanderson provides heat treatment at their Johannesburg
and Cape Town branches and therefore complements the existing Hudaco business of Ambro Steel,
which incorporates Midrand Special Steels and Don Steel.

Both Transactions fall below the threshold of a category 2 transaction which requires disclosure in
terms of the JSE Limited’s Listing Requirements. However, Hudaco’s Board believes it is appropriate
to inform shareholders of the Transactions.

Johannesburg
20 January 2016

Sponsor: Nedbank Corporate and Investment Banking

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