Cape Town – Trellidor [JSE:TRL] announced on Monday that it scooped the Shutterguard brand amid a R148.7m acquisition plan.
Trellidor’s 92.5% slice of Taylor Blinds and Shutters and NMC from Odyssey house will take effect on June 30 2016.
“These brands are complementary to our own, enabling us to extend our operations into new market segments,” said Trellidor CEO Terry Dennison.
“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.”
The security barrier system specialist, which listed on the JSE at the end of October 2015, said in a statement on Monday that Taylor Blinds is a long-standing manufacturer and marketer of a quality range of blinds and shutters while NMC is the South African distributor for NMC Belgium’s decorative mouldings.
Dennison said 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.
The cash purchase price will be settled in two tranches, with an option of Trellidor shares in the case of the second. The payment of the second and smaller tranche will be dependent on Taylor Blinds’ profit performance in the 12 months to April 2017.
In the six months to December 2015, Trellidor reported a 13% revenue growth, while headline earnings per share increased 22%.
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.