HUDACO INDUSTRIES LIMITED - Announcement regarding the acquisition of the trading assets and liabilities of Boltworld Proprietary Limited

Release Date: 04/06/2018 14:20
Code(s): HDC
 
Wrap Text
Announcement regarding the acquisition of the trading assets and liabilities of Boltworld Proprietary Limited

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 BOLTWORLD PROPRIETARY LIMITED (“BOLTWORLD”)
(“THE TRANSACTION”)

Hudaco has acquired the trading assets and liabilities of Boltworld with effect from 1 June 2018. The
final total consideration, to be paid out of existing facilities and future cash flow, will depend on
Boltworld’s profit for the twelve months to 30 June 2018, with an initial payment of R80m and a
maximum of R111m. These figures include an amount of R24m for inventory which Hudaco regards
as being in excess of normal requirements. The consideration paid for inventory was discounted from
original cost taking into account the period over which it is likely to be sold, based on historical sales
patterns.

Boltworld is a distributor of industrial fasteners selling to fastener retailers, hardware stores, building
supply operations, steel merchants and selected end users. Boltworld will be integrated into the FTS
business of Rutherford, an existing division of Hudaco selling rivets and a range of other industrial
fasteners.

The Transaction falls below the threshold of category 2 transactions, 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
04 June 2018

Sponsor
Nedbank Corporate and Investment Banking

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