Cashbuild has announced plans to acquire 60% of Allbuildco Holdings for R93m as part of the group’s strategy to serve a broader customer base across all income levels in SA.
The company aims to use its scale and expertise to grow the Allbuildco business, it said on Tuesday.
“Cashbuild believes that Allbuildco will provide the growth platform for Cashbuild to target a customer base not previously serviced by Cashbuild.
“Cashbuild’s intention is to leverage its scale, experience and expertise to support the development of Allbuildco in line with the growth strategy for the business,” said the company.
Cashbuild said it will fund the acquisition through its cash reserves and existing overdraft facilities. The company has also secured future options to increase its stake in Allbuildco by up to 40% over the next five years.
The company revealed that the target stores have an estimated adjusted net profit of R18.1m and a net asset value of R69.9m.
“After adjusting for inter alia income and expenses of the sellers not transferring to Opco and, similarly, assets and liabilities of the sellers that do not form part of the proposed transaction, the adjusted net profit after tax and the net asset value of the target stores to be delivered to Allbuildco on the effective date are estimated by Cashbuild to be R18.1m and R69.9m, respectively.”
Allbuildco, through its operating company, will own three hardware and building material stores now trading as Amper Alles in Silverlakes and Rayton in Pretoria, and Groblersdal in Limpopo. Cashbuild said the remaining 40% of Allbuildco will be retained by the current owners, the Blignaut family, with Braam and Hendrik Blignaut continuing to manage the stores.
The deal is still subject to several conditions, including competition authority approval, new lease agreements and franchise terminations.
The company said if all conditions are met by the long-stop date of December 15 2025, the transaction is expected to be completed shortly thereafter.