Acquisitions

Bidvest acquired the remaining 71,7% of HoLB for R538,0 million effective July 1 2013. Bidvest also purchased the majority shareholding of outsourcing firm Mvelaserve. At the time of the offer, Bidvest already owned just under 35%. The R846,6 million cash transaction became effective from November 1  2013.

A 60% stake in the share capital of Distribuidora E Importadora Irmãos Avelino Limitada (Avelino), a Brazilian company, was acquired with effect from January 1 2014 for a consideration of R$48,6 million (R229,7 million). This acquisition forms part of the Group’s strategic expansion plans in the international foodservice industry and broadens Bidvest’s exposure to South American markets.

In January and February 2014, the Group acquired an additional 44,5 million shares in Adcock for a consideration of R3,9 billion, bringing its total voting interest to approximately 30,0%. The Group has accounted for Adcock as an associate with effect from March 1 2014. The performance of Adcock has been negative, below expectation and at complete variance to what was portrayed in publicly published information prior to and at the time of our investment. Given ongoing uncertainty around the current trading performance, Bidvest continues to evaluate its position and has not determined whether to take steps to achieve control.

The Group also made a number of smaller acquisitions. Integration of all these businesses is progressing well. Total net investments in the year totalled R5,3 billion.

Post-year-end, and with effect from July 1 2014, the Group acquired a 60% interest in Gruppo Dac S.p.A. (DAC), a leading Italian foodservice provider, and a significant controlling stake in PCL 24/7 Limited (PCL), a specialist in chilled products storage and distribution business operating in the United Kingdom. The aggregate purchase consideration was approximately R1,7 billion (£95 million).