Listed logistics and transport company Value Group has agreed to acquire Key Distributors for a maximum of R32.68 million.
The acquisition is expected to be effective from March 1.
The payment of the maximum purchase price in cash in three tranches is subject to certain profit warranties and conditions being fulfilled.
Value Group said on Friday Key Distributors carried on the business of warehousing, distributing and wholesaling a variety of fast-moving consumer goods products into the formal and informal trade, including independent traders, fuel forecourts and small retailers and operated in the Gauteng, Polokwane, Nelspruit and Bloemfontein.
It said Key had successfully conducted this business in a hugely complex market over the past eight years by skilled hands-on competent management who would remain with the business for a minimum of four years after the effective date.
“As Key wholesales and delivers into the informal market, it offers Value a sought-after access into this dynamic and enterprising area of the market."
Value Group added 0.23 percent to close trade at R34.50.
Business Report