Bidvest buys out Brandcorp
Johannesburg - Investment holding company Bidvest says it will but Brandcorp for an undisclosed amount to add niche consumer and industrial products to its portfolio.
In a statement issued on Friday, the company - which employs 117 000 people and sells brands such as Audi and Konica Minolta - says buying all of Brandcorp allows it to add brands such as Cellini to its portfolio.
The Brandcorp portfolio will be ‘housed’ within Bidvest’s Commercial Products division (BCP), which will now be significantly enhanced, it says.
BCP trades in the industrial and consumer markets. Its industrial businesses include G.Fox, Plumblink, Afcom, Berzacks, Vulcan Catering Equipment, Buffalo Tapes, Sanlic House of Locks and Bidvest Materials Handling. The consumer businesses include Yamaha, Home of Living Brands and Academy Brushware.
Read also: Bidvest puts Bid Corp shares up for sale
CEO Lindsay Ralphs says “the acquisition of Brandcorp allows us to add scale to BCP, as well as accessing an existing client base that can be leveraged for synergies and other possible opportunities across the Bidvest group. Brandcorp brings strong, well-known, and niche brands offerings into Bidvest, which are difficult to replicate in this market. There is a natural fit between our two companies as we have similar decentralised management operating models and in instances our product offerings and customer base is complementary”.
This acquisition remains subject to certain final conditions precedent.
Read also: Bidvest spins off foodservices unit
Brandcorp is currently majority-owned and controlled by Ethos Private Equity.
Brandcorp is a holding company of businesses involved in the distribution and reselling of a wide range of niche, high-quality industrial and consumer products in southern Africa. Brandcorp currently owns well-known brands across its individual businesses, as well as distribution rights (exclusive and otherwise) for leading local and international brands. The business operates under two distinct platforms, the Industrial Division and Consumer Division.IOL