Plush takeover approved
Published: 18th May 2020
Pretoria, Gauteng, SA (May 13, 2020) – The Competition Tribunal has unconditionally approved the merger whereby Adcock Ingram Healthcare (Pty) Ltd (Adcock Ingram) will acquire Plush Professional Leather Care (Pty) Ltd (Plush).
Adcock Ingram is a subsidiary of Adcock Ingram Holdings Limited. The acquiring group is a pharmaceuticals firm that manufactures, markets and distributes healthcare products. Of relevance to the transaction, is the acquiring group’s activity in the manufacture and supply of medical grade sanitisers and surface cleaners.
Plush is a private company involved in manufacturing and distributing leather care and home cleaning products. Of relevance to the transaction is Plush’s activity in the manufacture and supply of “Plush Supreme” branded sanitisers and surface cleaners for household surfaces.
The transaction does not present any competition or public interest concerns.
On March 18, Adcock Ingram said: Adcock Ingram is pleased to announce that it has concluded a Share Purchase Agreement to acquire 100% of the shares of Plush Professional Leather Care Proprietary Limited ('Plush' or the 'Business') for a confidential purchase price, payable in cash, (the 'Plush Acquisition').
Plush is a well-established company offering an extensive range of homecare, cleaning and leather care products. Plush products are sold through most major retailers in South Africa and selected Southern African countries. Historically the Business generates revenue in excess of R200 million per annum.
The Board of directors of Adcock Ingram considers the Plush Acquisition an attractive investment opportunity to enter the homecare category.
Rationale for the Plush Acquisition:
- The Plush Acquisition is firmly in line with Adcock Ingram’s strategy of diversifying into less regulated product classes in the consumer sector. Further, Plush’s product portfolio has no overlap with Adcock Ingram’s existing portfolio. It will enable the establishment of a homecare business within Adcock Ingram that already has critical mass, allowing us to compete in this category in the Southern African market.
- The Plush brand is well established with strong support and awareness from both retailers and consumers. The brand has excellent potential for further line extensions into adjacent product categories.
- The existing senior management team, who are also the exiting shareholders of Plush, have been a crucial component of Plush’s success and continued growth over the last 10 years. As part of the transaction, this team has agreed to remain involved with the company for minimum periods of between 12 and 18 months. This will facilitate an orderly and sustainable transition of the Business into the Adcock Ingram group.
The Plush Acquisition is not a categorized transaction in terms of the JSE Limited Listings Requirements. Accordingly, no shareholder approval is required to conclude this transaction and this announcement is published voluntarily.
The Plush Acquisition is subject to regulatory and competition authorities approvals and other suspensive conditions typical for a transaction of this nature. A further announcement regarding the implementation of the Plush Acquisition will be made at the appropriate time.