Healthcare company Adcock Ingram has concluded an agreement to buy all shares of home and shoe care supplier Plush Professional Leather Care for an as yet undisclosed price.
According to an announcement on Wednesday, Adcock Ingram's board of directors saw the deal as an opportunity to move into the home care market, which was "firmly in line with Adcock Ingram’s strategy of diversifying into less regulated product classes in the consumer sector".
"We consider Plush to be an attractive investment for Adcock Ingram in a non-price regulated segment, allowing Adcock Ingram an entry into the homecare market, alongside our consumer healthcare and personal care portfolios.
"The company expects to help Plush increase its retail reach, and our strong balance sheet becomes available to the company for the expansion of its operations," said Adcock Ingram CEO Andy Hall in a statement.
Plush is a South African company which was established in 1964. Its focus is on the manufacturing and distribution of leather care products. In 2010, the company was bough by Corvest, and it has since diversified its offering into a range of home care and cleaning products that account for the majority of its revenue.
It generates sales in excess of R200 million and distributes its products through most of SA's major retailers.
Managing director Steve de Villiers said Plush was "totally committed" to joining Adcock Ingram, and that it was an opportunity for the Plush staff and brands to grow in a listed environment.
The existing team, which has been with Plush for the past 10 years, will remain with the company for 12 to 18 months during the transition to Adcock Ingram, the statement said.
"Continuity of the senior management team will also ensure that Plush’s customers, suppliers and staff experience a seamless transition under Adcock Ingram. Plush employs 60 people within its operations, and we are very happy to welcome the entire Plush team into the Adcock Ingram Group," said Hall.