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 Date: 04/06/2018 02:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.