Lonrho Regulatory News (LONR)

4 Apr 2008 07:01

Lonrho PLC04 April 2008 4 April 2008 LONRHO PLC (Lonrho or the 'Company') Lonrho acquires 51% of African fresh produce group Rollex. Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of Africaninvestments, today announces that it has signed an agreement to acquire a 51 percent stake in an agri-processing and logistics company, the Rollex Group ("Rollex"). Rollex, which was established in 1989, sources, packs and delivers fresh fruit,vegetable and fish produce from across Africa to its network of high-profileretail clients, including Woolworths in South Africa, and Marks & Spencer,Tesco, Sainsbury, World Flowers, TFC Holland and Univeg in Europe. In Sub-Saharan Africa, Rollex is the market leader within its sector anddistributes chilled perishable produce by air and road freight. The Acquisition For the year ended 28 February 2007, Rollex reported an audited turnover ofUS$39.5 million, an operating profit of US$1.9 million (US$0.3 million netprofit before tax after exceptionals) and had assets of US$15.8 million. Its2008 management accounts show an increase in turnover to US$48.8 million. The consideration for the 51% stake in Rollex, which includes the companiesRollex (Pty) Ltd and Fresh Direct Ltd, is ZAR40 million (approximately US$5.0million) in cash. The contract commits Lonrho to two further payments linked tothe EBITDA performance of Rollex. The two payments will respectively be dueafter the February 2009 and February 2010 audited accounts are produced, eachcalculated as Rollex EBITDA multiplied by 5.3 and then multiplied by 12.75 percent. Rollex's Operations Rollex operates from a three hectare site, strategically positioned withinternational airside access to OR Tambo Airport in Johannesburg, South Africa.The operations include 3000 sqm of cooled warehouse and cold room facilities forperishable produce and 1500 sqm for general storage warehousing andconsolidation purposes. Rollex uses its own fleet of refrigerated motorised units to ensure express pullback and delivery from the cargo handling terminals of all the major airlines atOR Tambo, Johannesburg's international airport, including British Airways,Emirates, Virgin and South African Airways. As a fully bonded facility itprovides for seamless and quick handling. The state of the art facility isoperational 24 hours a day, 365 days a year and provides 38 blast chilling bayscontrolled via a sophisticated Danfoss computerised temperature management andlogging system. Rollex develops and packs specialized combination andpre-prepared vegetable and fruit packs to specifications set by its clients. The site is approved by all the South African regulatory authorities. Thisincludes the Perishable Produce Export Control Board (PPECB) and NationalDepartment of Agriculture for Fruit, vegetables, and flowers. Rollex also operates a fish export division situated at Cape Town InternationalAirport. Specialist in food produce delivery South Africa is an internationally recognised production hub of qualityhorticultural, fruit and fish products from southern Africa. Rollex procures,handles and delivers a wide range of vegetables, fruit, salads, organic produceand fish and has become a specialist procurer and handler of fruits such aslitchis, avocado, kumquats, grapes, passion fruit, stone fruit, pineapple,strawberries, mangoes, papaya, and plums. A wide range of core and processed vegetables predominantly from Africa areexported to the northern hemisphere. Specific produce includes peas, petit pois,carrots, beans, broccoli, spinach and leaf products, chilies, peppers, saladonions and asparagus. A variety of cut flowers are also shipped on an ongoingbasis to Europe & the United Kingdom. David Lenigas, Lonrho's Executive Chairman commented: "We are very excited about the value that Rollex brings to Lonrho's investmentportfolio. Food processing and export from Africa to the blue chip retailmarkets in Europe is a key African industry with huge growth potential and theopportunity to create jobs in Africa. The Rollex management team are of anextremely high quality and bring with them vast experience of operating in thissector. This significant acquisition allows Lonrho to enter into the fast growingagri-processing market. The fruit and vegetable supply and distribution sectoris becoming a pan-African industry, and by acquiring 51% of the best operator inthe market, Lonrho will be in a strong position within the food distributionsector and expand across the continent." ENQUIRIES Lonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903Candice Sgroi +44 (0) 20 7743 6376 +44 (0) 7894 462 114 Collins Stewart Europe : NOMAD to LonrhoHugh Field / Jonny Sloan +44 (0) 20 7523 8350 NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays a fundamental role in the development of the African economy. Since 2006, the Company has invested in or acquired control of: Hotel Cardoso - www.hotelcardoso.co.mzLonrho Mining - www.lonrhomining.comLuba Freeport - www.lubafreeport.comFly540 - www.fly540.comNorse Air - www.norseair.co.zaSwissta Holdings - www.swissta.comSA Independent Liner Services - www.saliners.comBytes and PiecesKwikbuild - www.e-kwikbuild.com This information is provided by RNS The company news service from the London Stock Exchange