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[June 2008]
Brikor Acquires Sand and Stone Quarry to Boost Participation in SA’s Infrastructure Spend
The South African brick, tile and paving manufacturer Brikor Ltd has entered into an agreement to acquire all issued share capital of Donkerhoek Quartzite (Pty) Ltd and its quarry business, which is conducted by Leopont 365 Properties (Pty) Ltd. The Donkerhoek quarry, situated in Pretoria East, is a quartzite quarry producing sand and stone.
Brikor CEO and Chairman, Garnett van Niekerk Parkin, says the transaction is in line with Brikor’s growth and vertical integration strategy, as well as its geographical expansion plans.
“The transaction will expand and diversify what we currently offer to the market. Donkerhoek products will increase Brikor’s participation in infrastructural projects. Brikor intends to take part in the supply of silica-based stone into the iron and steel industry,” he said.
Brikor manufactures clay bricks, roof tiles and clay pipes at its manufacturing facilities in Nigel, Olifantsfontein, Vereeniging and Bronkhorstspruit.
Effective date of the acquisition depends on approval from the Competition Commission but will not be later than 1 August 2008.
The transaction is conditional on timely completion of a satisfactory due diligence investigation and Competition Commission approval. It will attract an upfront payment of R70 million and a further payment of up to a maximum of R70 million if certain profit warranties are achieved.
The Donkerhoek acquisition follows on from the recent successful acquisition of the Zululand Quarries Group which expanded Brikor’s footprint to KZN (KwaZulu Natal). In the first month of operation as part of the Brikor Group, it has performed above all expectations. The Zululand Quarries Group produces stone and manufactures bricks, blocks and roof tiles and is now on an expansion drive with regard to ready mix products. All companies acquired in the Zululand Quarries transaction have now been consolidated into Stanger Brick and Tile (Pty) Ltd.
www.brikor.co.za
ENDS