Iliad Africa on Monday announced the sale of its wholesale timber business to York Timber subsidiary Agentimber for R45.5-million, following a decision by the building materials provider to streamline its portfolio.
The transaction would see York acquiring the defined tangible operating assets, liabilities and intangible assets of the business as a going concern.
Iliad Africa CEO Eugene Beneke told Engineering News Online on Monday that the decision to dispose of the business followed a strategic portfolio review process.
“The business has not, on an ongoing basis, achieved its business objectives and, more importantly, we don’t believe that it, as a wholesale division, is the right strategic fit for us into the future,” he commented.
The timber business comprised Germiston-based timber manufacturer and wholesale distributor Thorpe Timber, as well as Cape Town-based timber value adding, treating and wholesale distribution business Timber Preservation Services.
The proceeds of the sale would be used to fund working capital requirements and future growth for Iliad.