South Africa's Cashbuild Acquires The Building Company

Cashbuild has announced it has entered into a definitive sale and purchase agreement on 3 August 2020 with Pepkor Holdings Limited, to acquire 100% of the issued share capital of The Building Company Proprietary Limited.

Cashbuild is the largest retailer of building materials and associated products, selling directly to cash-paying customers through its 260 (and growing) stores in South Africa, Namibia, Lesotho, Botswana, Swaziland, Malawi and Zambia.  

The Building Company is a leading Southern African building materials retail and wholesale business, providing a full spectrum of services through its portfolio of 13 well-known brands across its three divisions. TBC has an established presence across the coastal regions of South Africa, comprising 160 TBC outlets and 21 franchise stores

In the prior financial year ending 30 September 2019, The Building Company achieved revenue of c.R8.2 billion across the retail, wholesale and specialised divisions. In the twelve month period ended 31 March 2020, TBC achieved revenue of c.R8.0 billion.

Cashbuild’s management identified geographic expansion and incremental access to additional segments of the market as key areas for potential growth. An acquisition of TBC allows Cashbuild an opportunity to drive these growth initiatives while still maintaining its commitment to its customers in the South African and neighbouring markets.

Source : Insight DIY Team and Cashbuild

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