Hudaco acquires Boltworld

Johannesburg – Hudaco Industries Limited [JSE: HDC] announced on Monday that it has acquired the trading assets and liabilities of industrial fastener distributor Boltworld. The acquisition has been effective since June 1.

The final total that will be paid out will be between R80m and R111m. 

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Hudaco said: “The final total consideration, to be paid out of existing facilities and future cash flow, will depend on Boltworld’s profit for the 12 months to June 30 2018.”

The final amount will include R24m for inventory, an amount Hudaco said is “in excess of normal requirements”.

“The consideration paid for inventory was discounted from original cost taking into account the period over which it is likely to be sold, based on historical sales patterns,” Huduco said.

According to Huduco, Boltword will be integrated into the company’s existing fastener division Rutherford.

Hudaco shares were trading at R160.17, up 0.74% on the day at 15:52 on the JSE on Monday.