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STEINHOFF UK ACQUIRES SPRUNG SLUMBER

Release Date: 09/10/2003 14:24
Code(s): SHF
Wrap Text

STEINHOFF UK ACQUIRES SPRUNG SLUMBER Steinhoff International Holdings Limited ("Steinhoff") JSE Share code: SHF ISIN: ZAE000016176 Steinhoff UK Holdings Limited ("Steinhoff UK") a subsidiary of Steinhoff International Holdings Limited ("Steinhoff") announced on Friday, 3 October 2003, the acquisition of the business and assets of Sprung Slumber Limited, one of the bed manufacturing operations of Airsprung Furniture Group PLC. The purchase consideration amounts to approximately GBP5.4 million and will be payable in cash. Sprung Slumber is a long established bed manufacturing company which has annual sales of GBP11 million and a strong profit record over many years. The estimated sustainable earnings before interest and tax of the acquired assets amount to GBP1 million per annum. The product range of Sprung Slumber comprises mainly matresses and divans but also includes metal bed frames. The market coverage of Sprung Slumber is complementary to Relyon and will bring new major customers to Steinhoff UK. Markus Jooste, Steinhoff CEO commented: "With the addition of Sprung Slumber, Steinhoff UK now offers greater choice to a wider range of customers in line with our strategy to expand market coverage through complementary products and to participate in the consolidation trend that is prevalent in the European markets in which we operate." From a raw materials perspective, Sprung Slumber offers an excellent opportunity to expand intra-group foam and fibre sales from Pritex (a division of Steinhoff UK) as well as opening up new possibilities for Steinhoff"s raw material producing subsidiaries in Southern Africa. Commenting on the acquisition Ian Topping, MD Steinhoff UK said: "Sprung Slumber will be operated as a separate business to fulfil its considerable, stand-alone growth potential. We welcome our 175 new colleagues to Steinhoff and look forward to working with them to build an even more successful company." ends 8 Oct 2003 Enquiries Steinhoff International Holdings Ltd 011 445 3000 Markus Jooste, CEO Piet Ferreira, Director Corporate Advisory Services Steinhoff UK Holdings Ltd 0944 1823 66 8218 Ian Topping MD College Hill 011 447 3030 Johannes van Niekerk 082 921 9110 Angela Parr 083 578 3885 Background note Steinhoff International Holdings Limited manufactures, warehouses and distributes a wide range of household goods, including upholstered furniture, case goods, bedding as well as raw materials used primarily in the manufacturing of household goods. The Group"s facilities are situated throughout Europe, Australia and Southern Africa. It is listed on the JSE, South Africa and as of 7 October 2003 had a market capitalisation of ZAR 6.4 billion. The Group employs approximately 20,500 people (as of June 30th 2003) with a further 10,000 people through associates and joint ventures. Steinhoff UK is a group of trading and manufacturing companies which was formed pursuant to the acquisition of Relyon Group Plc, now Relyon Group Limited in September 2001. The three former Relyon businesses, being Relyon (UK bed manufacturing), Norma (Dutch bed manufacturing) and Pritex (UK foam and fibre conversion), were combined with Steinhoff"s existing UK sales and distribution business situated at Tewkesbury. Following this acquisition it will own eight factories in the UK and The Netherlands and one distribution centre in the UK. Visit www.steinhoffinternational.com for more information. Date: 09/10/2003 02:24:05 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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