ARM Holdings and its subsidiary Eurolux will acquire lighting firm Radiant Group for roughly R117 million.
Radiant, a subsidiary of South Ocean, is an importer of a range of light fittings, lamps and electrical products for distribution throughout South Africa and 17 African countries from its operations in Wynberg, Johannesburg.
ARB said yesterday that the purchase consideration would be settled in cash by Eurolux, with funding from Eurolux’s shareholders, and that the purchase price would be calculated on the effective date and based on the tangible net asset value of Radiant, less a fixed amount of R20m.
The deal still needs the green light from the Competition Commission
ARB said Eurolux would continue to focus on its strength in the retail business, and Radiant would focus on the wholesale, construction and project sectors of the market.
The tangible net asset value of the business being acquired, together with the properties, for the six months to end-June according to the unaudited interim financial statements, was R200.77m.
Revenue for Radiant at the end of June amounted to R137.78m, down from R142.36m and losses after tax attributable to Radiant shareholders was R11.47m, up from R10.51m compared with last year.
The group said these losses included significant impairments and write-downs of R13.24m in the current year.
The purchase price for the five Radiant properties, comprising Erven 445 and 446 Wynberg, Erf 539 Wynberg and Erven 1111 and 1112 Marlboro, is a fixed amount of R88m.