SUPER GROUP LIMITED - Acquisition of Motiva by SG Fleet Group

Acquisition of Motiva by SG Fleet Group

Super Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1943/016107/06)
Share code: SPG
ISIN: ZAE000161832
(“Super Group”)

ACQUISITION OF MOTIVA BY SG FLEET GROUP

SG Fleet Group Limited (‘SG Fleet’ / ASX: SGF), a subsidiary of Super Group
Limited, has announced the acquisition of a UK company, Motiva, a provider of
contract hire, short-term rental and fleet management services (“the
Acquisition”). The Acquisition establishes SG Fleet in the Top 20 in the UK
market.

The salient details of the Acquisition are:
-   Motiva is provider of contract hire, short-term rental and fleet
    management services
-   Based in Stoke-on-Trent – 50 staff
-   Normalised PBT £1.75m
-   Acquisition builds further on platform created by Fleet Hire acquisition
-   Purchase price £12.4m – 7.1x Normalised PBT
-   Anticipated 3.5% cash EPS accretion in first full year of ownership


The acquisition follows that of Fleet Hire in August 2016 and builds further
on the profitable platform and critical mass created by combining SG Fleet’s
existing UK business and Fleet Hire. Integration of Motiva will see SG Fleet
enter the Top 20 segment of the UK market.
Purchase price of the acquisition is £12.4 million. Shares to the value of
£1.125 million will be issued to the vendors, with the remainder of the
consideration to be funded through debt (£7.4 million) and cash on hand
(£3.9 million). This values Motiva at 7.1-times Normalised Profit Before
Tax. SG Fleet expects cash EPS accretion including synergies in its first
full year of ownership of 3.5%.
SG Fleet’s Chief Executive Officer, Robbie Blau, said: “Motiva perfectly
complements our current footprint in the UK. It is an ideal fit for our
growth strategy, adding further scale to our tool-of-trade offering as well
as expertise in the specialist light commercial vehicle segment. It also
provides us with a broader target customer base for our salary sacrifice
products and gives us access to a broader panel of funders and funding
structures. Finally, given the strong compatibility with our existing UK
business, there are clear opportunities to extract revenue and cost
synergies”.


Motiva overview
Motiva is headquartered in Stoke-on-Trent, 80 kilometres north of SG Fleet’s
Hampton-in-Arden offices, towards the Manchester/Liverpool economic hub. The
company employs 50 staff and currently has a 4,300-unit fleet under
management.
Contract hire services are provided under the main Motiva brand. This
division operates a fleet ranging from cars and light commercial vehicles to
trucks. The vast majority of the Motiva Contract Hire Fleet carries the
company’s Motrak telematics units.
M-Way Vehicle Rentals is the rental division, focusing on the light van and
commercial vehicle market, including specialist vehicles. M-Way offers
short-term fixed tariff rentals or shorter contract hire agreements under
the Lite-Lease brand.
Motiva Direct operates the Group’s fleet management services, including
maintenance and accident management and roadside assistance. All of these
brands have strong recognition in the market.
Motiva’s offering is sold as an integrated corporate solution, similar to
that of SG Fleet’s current UK business. The company has grown a well-
balanced, low concentration customer book and consistently achieves high
retention rates, helped by continuous product innovation.
Key members of Motiva’s highly regarded management team will be retained by
SG Fleet, adding further bench strength and knowledge to its UK team.


Fleet Hire integration on track – UK progress to continue
Mr Blau also provided an update on the integration of Fleet Hire, noting
that no time had been wasted in bringing the SG Fleet and Fleet Hire
businesses together. “The teams are operating from a combined location and
our systems integration is proceeding as planned. We have made good progress
with extracting the procurement and disposal benefits available to us. Most
importantly, we have received a really positive response from our
customers,” he said.
“I am delighted that we have been able to come to an agreement with Motiva.
We will be targeting a seamless integration of the business, taking our UK
presence to the next level. We now have the scale, the products and the
expertise to establish ourselves firmly in this market,” Mr Blau concluded.
Further details on the Acquisition will be available on SG Fleet’s website
www.sgfleet.com from Wednesday 30 November 2016.

Sandton
30 November 2016

Sponsor: Deutsche Securities (SA) Proprietary Limited

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