Pepkor Announces The Disposal Of The Building Company
Pepkor Announces The Disposal Of The Building Company. Pepkor has announced that the company has entered into a sale agreement with respect to the disposal of Pepkor’s wholly owned subsidiary, TBCo, for a purchase consideration of R1.2 billion to Capitalworks Private Equity and selected members of TBCo management.
TBCo has continued to expand its value proposition which includes an attractive portfolio of well-known brands, under Pepkor’s ownership, while refining its strategy and consolidating its operational structure. The disposal of TBCo will streamline Pepkor’s portfolio of businesses, enhancing the Group’s return on capital and optimise shareholder returns. Following the Proposed Transaction, TBCo will be well positioned strategically and operationally to pursue growth.
Pepkor began life over 100 years ago and quickly built a reputation of giving South Africans the right products, at the right price, and at their convenience. The group has steadily expanded its footprint over the years to include significant reach into southern Africa, as well as a limited range of other African economies. The majority of Pepkor’s retail brands operate in the discount and value market segment, which enjoys natural resilience thanks to customers’ ability to buy ‘up’ or ‘down’ according to their budgets, and prevailing economic conditions.
The Building Company is the Southern African operations building material division of Pepkor. The Building Company’s retail activities expand to 171 outlets throughout Southern Africa. Its branches are located in major centres in South Africa, Namibia, Swaziland and Botswana, and are managed as either corporate, joint venture or franchise stores. The company’s brands serve the full spectrum of the construction industry, including the residential, commercial and industrial markets.
