Johannesburg - Trellidor has bought 92.5 percent of Taylor Blinds and Shutters and NMC for R148.7 million.
This marks the first deal the company has concluded since listing on the JSE at the end of October last year, it says in a statement issued on Monday.
Trellidor bought the bling manufacturer and NMC, the local distributor for NMC Belgium’s decorative mouldings, from Odyssey House.
The deal should be effective at the end of this month and will be paid for in two installments, the company says.
CEO Terry Dennison explains a major reason for the listing was to raise capital for growth through acquisitions in the security and home improvements sectors and for expansion into Africa where it already enjoys a presence in 17 countries.
Read also: Trellidor still looking for targets
Dennison says the acquisition would provide Trellidor with additional strong brands, such as Shutterguard security shutters. “These brands are complementary to our own, enabling us to extend our operations into new market segments. We are also gaining an experienced management team as well as a distribution network on which we can build.
“The acquisition also gives us the opportunity to diversify into the lucrative home improvements sector which we see as complementary to the barrier security sector.”
Trellidor, which manufactures all its own custom-made products, operates an extensive network of franchise outlets in South Africa and beyond its borders. It operates in a sector that is seen as offering robust growth in a highly security-conscious market due to the country’s rising crime rate and growing middle class.
In the six months to December 2015 it reported 13 percent revenue growth, while headline earnings per share increased 22 percent.
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