Invicta selling BSG to Steinbuild for R678m, effective April
Invicta says BSG is a better fit with Steinbuild in terms of building its brands and its growth aspirations
Invicta Holdings, a diversified industrial group, will sell Steinhoff Doors and Building Materials (Steinbuild), a subsidiary of Steinhoff International Holdings, 100% of its subsidiary Building Supply Group (BSG) for R678m, effective April 2017.
Invicta holds a 60% interest in BSG with the balance held by management. The sale will be settled with cash. BSG owns distribution facilities and tile retail outlets in Southern Africa, and also has offices in Asia. Steinbuild’s retail brands include Buco, Pennypinchers, Timbercity, Hardware Warehouse and The Tile House.
"We are very pleased with this transaction as we believe that the BSG business is a much better fit with Steinbuild in terms of building its brands and growth aspirations," Arnold Goldstone, CEO of Invicta, said on Thursday. "It also allows Invicta to focus on its core competencies … providing capital equipment and parts, as well as engineering solutions, to a number of diverse industries."
BSG imports more than 4,000 containers of building material products and exports more than 2,500 annually. At the end of March 2016, it had a net asset value of R229m. Profit after tax for the year to March 2016 was R38m.
Steinbuild has 104 retail outlets throughout Southern Africa. The company serves the construction industry across residential, commercial and industrial markets. Customers include professional and private developers, project managers, building contractors, builders, plumbers, electricians, joiners, cabinet-makers, tilers, roofing specialists, owner-builders and home improvers.
"We are delighted to have reached an agreement with Invicta regarding the acquisition of BSG as it will add the Brands4Africa, Tiletoria and MacNeil brands to our established, strong suite of building material brands," Eugene Beneke, CEO of Steinbuild, said.