HUDACO INDUSTRIES LIMITED - Announcement regarding the acquisition of Hydraulic Engineering Repair Services (Pty) Ltd

Announcement regarding the acquisition of Hydraulic Engineering Repair Services (Pty) Ltd

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
            HYDRAULIC ENGINEERING REPAIR SERVICES (PTY) LTD (“HERS”)
                             (“THE TRANSACTION”)


Hudaco has acquired the trading assets and liabilities of HERS from 1 December 2015. The final total
consideration will depend on the average profits over a two year earn-out period, with an initial
payment of R33m and a maximum of R100m.


HERS is a manufacturer and repairer of hydraulic cylinders and has a division that focuses on the
repair and refurbishment of drivetrain components using leading branded products, including
Kessler and Co. These components include axles, transmissions and torque converters for the
mining, construction, manufacturing and other industries. The business has synergies with existing
Hudaco businesses both in terms of products and customers.


The transaction falls 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 transaction.



Johannesburg
1 February 2016

Sponsor
Nedbank Corporate and Investment Banking

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