In line with JSE-listed pharmaceuticals manufacturer Adcock Ingram’s strategy to pursue value-adding acquisitions, particularly in less-regulated areas of the market, the company has concluded a share purchase agreement to acquire 100% of shoe and leather products manufacturer Plush.
The acquisition is subject to the fulfilment of several suspensive conditions, including approval by the competition authorities.
Although Plush’s roots lie in shoe and leather care products, it has, over the last decade, successfully diversified its product offering into a range of home care and cleaning products that now make up the majority of its revenue.
Plush generates sales in excess of R200-million and distributes its products through most of the major retailers in South Africa.
Plush MD Steve de Villiers on Wednesday said the company looked forward to “adding value, from an operational and strategic perspective, to the combined entity”.
Adcock CEO Andy Hall added that the company considered Plush to be “an attractive investment” in a non-price-regulated segment, which afforded it an entry into the homecare market, alongside its consumer healthcare and personal care portfolios.
The company expects to assist Plush in increasing its retail reach.