{"id":422446,"date":"2020-08-04T10:10:50","date_gmt":"2020-08-04T08:10:50","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=422446"},"modified":"2020-08-04T10:10:50","modified_gmt":"2020-08-04T08:10:50","slug":"cashbuild-to-buy-pepkor-subsidiary-for-r1-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/422446\/cashbuild-to-buy-pepkor-subsidiary-for-r1-billion\/","title":{"rendered":"Cashbuild to buy Pepkor subsidiary for R1 billion"},"content":{"rendered":"<p>Listed <span class=\"st\">retailer of building materials and associated products<\/span>, Cashbuild says it wants to purchase Pepkor Holdings subsidiary, The Building Company (TBC), for R1.07 billion.<\/p>\n<p>&#8220;Cashbuild\u2019s management identified geographic expansion and incremental access to additional segments of the market as key areas for potential growth,&#8221; it said in a statement on Tuesday (4 August).<\/p>\n<p>The group said that the transaction is anticipated to result in the following benefits to the company and its shareholders:<\/p>\n<ul>\n<li>An increased retail store footprint presence in Cashbuild\u2019s previously underrepresented regions, particularly those in the Western Cape, Eastern Cape and Kwa-Zulu Natal;<\/li>\n<\/ul>\n<ul>\n<li>A broader reach into the middle-to-higher income customer segment, a target market currently underserved by Cashbuild\u2019s current offering;<\/li>\n<\/ul>\n<ul>\n<li>Incremental competency in accessing and servicing the building contractors segment of the market;<\/li>\n<\/ul>\n<ul>\n<li>Improved operational efficiencies and improved future trading profitability through access to additional suppliers, inventory and the optimisation of delivery routes.<\/li>\n<\/ul>\n<p><strong>The Building Company<\/strong><\/p>\n<p>TBC is a building materials retail and wholesale business, providing a service offering to the construction industry including residential, commercial and industrial markets.<\/p>\n<p>In the prior financial year ending 30 September 2019, TBC achieved revenue of R8.2 billion across the retail, wholesale and specialised divisions.\u00a0 In the twelve-month period ended March 2020, it achieved revenue of R8 billion.<\/p>\n<p>TBC offers a portfolio of 13 brands across its three divisions, namely:<\/p>\n<ul>\n<li>The retail division which houses Buco and Timbercity;<\/li>\n<li>The wholesale division which includes Cachet and MacNeil chains,<\/li>\n<li>A specialised division offering differentiated products across brands including Bildware and Tiletoria.<\/li>\n<\/ul>\n<p>Cashbuild said that TBC has an attractive portfolio of store locations with an established presence across the coastal regions of South Africa, comprising 160 TBC outlets, and 21 franchise stores.<\/p>\n<p>The portfolio includes 91 Buco stores, 75% of which are merchant stores with the balance being cash stores, and 20 Timbercity stores.<\/p>\n<p>The remainder of TBC\u2019s store footprint largely covers both the wholesale and specialised divisions.<\/p>\n<p>TBC\u2019s presence, inclusive of franchise stores, is predominantly based in South Africa (171 stores) with a further presence in the rest of Southern Africa including Namibia (7 stores), Botswana (2 stores) and Zambia (1 store).<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/422308\/uif-extends-window-for-april-and-may-coronavirus-employee-relief-funding\/\" target=\"_blank\" rel=\"noopener noreferrer\">UIF extends window for April and May coronavirus employee relief funding<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cashbuild says it wants to purchase Pepkor Holdings subsidiary, The Building Company (TBC), for R1.07 billion.<\/p>\n","protected":false},"author":10,"featured_media":422448,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[15150,26,4076],"class_list":["post-422446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cashbuild","tag-headline","tag-pepkor"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/422446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=422446"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/422446\/revisions"}],"predecessor-version":[{"id":422458,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/422446\/revisions\/422458"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/422448"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=422446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=422446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=422446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}