Hudaco - acquisition announcement
With effect from 1 September 2018, Hudaco acquired the fixed assets, trading inventory, customer and supplier lists, trading contracts and the workforce of Secequip (trading as TPA Security Distributors). The total consideration, to be paid out of existing facilities and future cash flow, is R31 million.
Secequip is a distributor of security and surveillance products, particularly the Texecom brand. It will initially trade separately from Elvey Security Technologies, an existing division of Hudaco, but the back offices of the two businesses will be integrated to achieve synergies.
The Transaction falls below the threshold of category 2 transactions, which requires disclosure in terms of the JSE Ltd.∆s Listing Requirements. However, Hudaco∆s board believes it is appropriate to inform shareholders of the transaction.