Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, today announces that it has signed an agreement to acquire a 51 per cent stake in an agri-processing and logistics company, the Rollex Group ("Rollex").
Rollex, which was established in 1989, sources, packs and delivers fresh fruit, vegetable and fish produce from across Africa to its network of high-profile retail clients, including Woolworths in South Africa, and Marks & Spencer, Tesco, Sainsbury, World Flowers, TFC Holland and Univeg in Europe.
In Sub-Saharan Africa, Rollex is the market leader within its sector and distributes chilled perishable produce by air and road freight.
The Acquisition
For the year ended 28 February 2007, Rollex reported an audited turnover of US$39.5 million, an operating profit of US$1.9 million (US$0.3 million net profit before tax after exceptionals) and had assets of US$15.8 million. Its 2008 management accounts show an increase in turnover to US$48.8 million.
The consideration for the 51% stake in Rollex, which includes the companies Rollex (Pty) Ltd and Fresh Direct Ltd, is ZAR40 million (approximately US$5.0 million) in cash. The contract commits Lonrho to two further payments linked to the EBITDA performance of Rollex. The two payments will respectively be due after the February 2009 and February 2010 audited accounts are produced, each calculated as Rollex EBITDA multiplied by 5.3 and then multiplied by 12.75 per cent.
Rollex's Operations
Rollex operates from a three hectare site, strategically positioned with international airside access to OR Tambo Airport in Johannesburg, South Africa. The operations include 3000 sqm of cooled warehouse and cold room facilities for perishable produce and 1500 sqm for general storage warehousing and consolidation purposes.
Rollex uses its own fleet of refrigerated motorised units to ensure express pull back and delivery from the cargo handling terminals of all the major airlines at OR Tambo, Johannesburg's international airport, including British Airways, Emirates, Virgin and South African Airways. As a fully bonded facility it provides for seamless and quick handling. The state of the art facility is operational 24 hours a day, 365 days a year and provides 38 blast chilling bays controlled via a sophisticated Danfoss computerised temperature management and logging system. Rollex develops and packs specialized combination and pre-prepared vegetable and fruit packs to specifications set by its clients.
The site is approved by all the South African regulatory authorities. This includes the Perishable Produce Export Control Board (PPECB) and National Department of Agriculture for Fruit, vegetables, and flowers.
Rollex also operates a fish export division situated at Cape Town International Airport.
Specialist in food produce delivery
South Africa is an internationally recognised production hub of quality horticultural, fruit and fish products from southern Africa. Rollex procures, handles and delivers a wide range of vegetables, fruit, salads, organic produce and fish and has become a specialist procurer and handler of fruits such as litchis, avocado, kumquats, grapes, passion fruit, stone fruit, pineapple, strawberries, mangoes, papaya, and plums.
A wide range of core and processed vegetables predominantly from Africa are exported to the northern hemisphere. Specific produce includes peas, petit pois, carrots, beans, broccoli, spinach and leaf products, chilies, peppers, salad onions and asparagus. A variety of cut flowers are also shipped on an ongoing basis to Europe & the United Kingdom.
David Lenigas, Lonrho's Executive Chairman commented:
"We are very excited about the value that Rollex brings to Lonrho's investment portfolio. Food processing and export from Africa to the blue chip retail markets in Europe is a key African industry with huge growth potential and the opportunity to create jobs in Africa. The Rollex management team are of an extremely high quality and bring with them vast experience of operating in this sector.
This significant acquisition allows Lonrho to enter into the fast growing agri-processing market. The fruit and vegetable supply and distribution sector is becoming a pan-African industry, and by acquiring 51% of the best operator in the market, Lonrho will be in a strong position within the food distribution sector and expand across the continent."
ENQUIRIES
- Lonrho Plc +44 (0)20 7016 5105
- David Lenigas, Executive Chairman +44 (0)7881 825 378
- Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
- Emma Priestley, Executive Director +44 (0)7867 785 177
- Pelham PR Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297903
- Candice Sgroi +44 (0) 20 7743 6376, +44 (0) 7894 462 114
- Collins Stewart Europe : NOMAD to Lonrho Hugh Field / Jonny Sloan +44 (0) 20 7523 8350
NOTES TO EDITORS
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
- Hotel Cardoso - www.hotelcardoso.co.mz
- Lonrho Mining - www.lonrhomining.com
- Luba Freeport - www.lubafreeport.com
- Fly540 - www.fly540.com
- Norse Air - www.norseair.co.za
- Swissta Holdings - www.swissta.com
- SA Independent Liner Services - www.saliners.com
- Bytes and Pieces
- Kwikbuild - www.e-kwikbuild.com
