G & L Beijer AB has strengthened its position in southern Africa through two acquisitions, one in South Africa and one in Mozambique. The acquisitions will contribute total annual sales of approximately SEK 50M to the Group.
In South Africa, G & L Beijer has acquired Phoenix Racks (Pty) Ltd which designs, develops and builds customer-adapted refrigeration units. The company reports annual sales of approximately SEK 35M and has 23 employees. Phoenix Racks is a leading producer of environmentally friendly solutions for refrigeration units.
Phoenix Racks complements G & L Beijer’s existing operation in South Africa and strengthens the Group’s total customer offer. Phoenix Racks gains access to G & L Beijer’s distribution network with 22 branches in South Africa. This creates good opportunities for additional sales and enables G & L Beijer to increase its product range. There are also cost synergies on the purchasing side.
The establishment of the operation in Mozambique is made through a newly formed company which acquires the assets in the company, Logos Industrias. Logos Industrias is a refrigeration wholesaler and a distributor of products manufactured by G & L Beijer’s South African operation. The company reports sales of approximately SEK 15M and has 5 employees. Initially, G & L Beijer acquires 40 per cent of the shares in the newly formed company with an option to acquire the remaining 60 per cent within 24 months.
The Group already has operations in South Africa, Botswana and Namibia. After the acquisitions, G & L Beijer’s annual sales in southern Africa amount to more than SEK 700M with good profitability. This is equivalent to around 10 per cent of the Group’s total sales.
The acquisitions are expected to have a marginal positive effect on G & L Beijer’s profit per share. The acquired companies will be included in the consolidated accounts from the fourth quarter of 2011.
Malmö, 3 November 2011
G & L Beijer AB (publ)
For further information, please contact:
Joen Magnusson, Managing Director
G & L Beijer AB
Telephone +46 40-35 89 00
Mobile +46 709-26 50 91
Jonas Lindqvist, CFO
Telephone +46 40-35 89 00
Mobile +46 705-90 89 04
G & L Beijer AB (publ) discloses the information provided here pursuant to the Securities Market Act and/or the Financial Instruments Trading Act.
G & L Beijer is a technology-oriented trading Group which, through a combination of added-value agency products and products of the company’s own development, offers competitive solutions for its customers within refrigeration and air conditioning.
In the previous year, operations were consolidated into comprising only products within refrigeration and air conditioning.