Johannesburg - Steel merchant Argent Industrial will buy paint and ladder maker, Paint & Ladders, for R57m in a deal that would diversify its product offering, it said on Tuesday.
The purchase amount will be settled through cash payment of R16.3m and the issue of 2.5 million shares at 1 617c each.
The deal, which is subject to the approval of the Competition
Commission, is effective from March 1, 2008.
"The Paint and Ladder products are well know brands and this adds more credence to the fact that Argent's diversification is well on track," the group said.
Paint and Ladder is a national company with R200m annual turnover, which could add 5.5% to the Argent headline earnings.
At 9:38, Argent shares were flat at 1 790c.
- I-Net Bridge