Cashbuild moves to acquire 60% stake in Allbuildco Holdings for R93 million

Cashbuild has confirmed its intent to acquire a 60% controlling interest in Allbuildco Holdings for R93 million in a bid to solidify its position within the hardware and building materials market.

This significant acquisition, executed through its subsidiary Cashbuild Management Services, was formalised with a subscription agreement on Monday. The transaction is poised to enhance Cashbuild's reach, targeting a previously underserved customer base across all LSM bands in South Africa.

Allbuildco, through its wholly-owned subsidiary, will manage the operations and assets of three hardware and building material stores under the Amper Alles brand, located in Silverlakes and Rayton in Pretoria, as well as in Groblersdal, Limpopo.

Presently, these stores are owned by Amper Alles Hardware City Silverlakes, Amper Alles Hardware City Rayton, and Amper Alles Hardware City Groblersdal (sellers).

The acquisition is structured in a manner that allows the original owners, the Blignaut family—comprised of Messrs Willem, Braam, Hendrik, and Renier Blignaut—to retain a 40% stake in the new entity.

Moreover, the current leading executives, Braam and Hendrik Blignaut, will continue to oversee the operations of the business, ensuring continuity and leveraging local market expertise.

Cashbuild said that this acquisition aligned tightly with its growth strategy, positioning the company as a formidable leader within the hardware sector. With this transaction, Cashbuild aims to not only diversify its offerings but also to significantly expand its market footprint.

The integration of Allbuildco is anticipated to provide a robust platform for future growth and development, fuelling Cashbuild’s ambition of catering to an extensive and varied customer demographic.

“Allbuildco represents a unique opportunity for us to redefine our customer outreach and expand our market share,” said a spokesperson for Cashbuild. “The expertise and local knowledge offered by the Blignaut family will be invaluable as we navigate this transition.”

The proposed transaction is contingent upon several conditions, including the fulfilment of the necessary legal agreements by 15 December 2025, the approval from competition authorities, and the establishment of lease agreements for the Target Stores.

Cashbuild plans to fund the R93m subscription consideration from its own cash reserves and banking facilities. The agreement includes potential options for Cashbuild to further increase its stake in Allbuildco by an additional 10% to 40% over the next five years, showcasing commitment to the growth of  Allbuildco.

The sellers have reported a net profit after tax of R12.8m and a net asset value of R112.2m for the fiscal year ending 28 February 2024. Upon completion of the proposed transaction, Cashbuild estimates that the adjusted net profit after tax for the Target Stores will be approximately R18.1m, further underscoring the acquisition's validity.

BUSINESS REPORT