HUDACO INDUSTRIES LIMITED - Voluntary Announcement regarding the Acquisition of the Trading Assets and Liabilities of Flosolve

Voluntary Announcement regarding the Acquisition of the Trading Assets and Liabilities of Flosolve

HUDACO INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1985/004617/06)
Share code: HDC & ISIN: ZAE000003273
("Hudaco")


VOLUNTARY ANNOUNCEMENT REGARDING THE ACQUISITION OF THE TRADING ASSETS AND
LIABILITIES OF FLOSOLVE PROPRIETARY LIMITED ("FLOSOLVE")


   1. INTRODUCTION

      Shareholders are advised that Hudaco has signed an agreement with Flosolve to acquire its
      trading assets and liabilities ("the Flosolve Business")("the Transaction") with effect from
      1 June 2025 (the "Effective Date").

       The purchase consideration (the "Consideration") will be based on the annual profit after tax
       of the Flosolve Business for the three years after the Effective Date, with an initial payment of
       R45m and a maximum Consideration of R125 million. This will be funded from cash generation
       and existing facilities of Hudaco.

   2. DESCRIPTION OF THE FLOSOLVE BUSINESS

      The Flosolve Business is an importer and stockist of specialised equipment for the handling of
      fuels, lubricants, greases and other fluids associated with the servicing and refuelling of plant
      and machinery, especially in the mining industry. It also provides on-site service to certain key
      customers and employs 53 full time staff, based in Gauteng and Middelburg.

   3. RATIONALE FOR THE TRANSACTION

      Hudaco specialises in the importation and distribution of selected high-quality branded
      automotive, industrial and electronic consumable products, mainly in the southern African
      region. One of Hudaco's key strategies is to acquire new businesses in similar fields of activity
      when the opportunity arises.

       The purchase of the Flosolve Business is consistent with Hudaco's acquisition strategy and is
       an ideal fit for its engineering consumables segment. Certain Hudaco divisions deal with
       similar customers and they will work together with the Flosolve Business to optimise and
       expand the combined customer base. In addition, Hudaco will be able to utilise its experience
       and expertise in value-added distribution to enhance the position of the Flosolve Business.

   4. CATEGORISATION

      The Transaction falls below the threshold of a category 2 transaction in terms of the JSE
      Limited Listing Requirements. Nevertheless, Hudaco's board of directors believes it is
      appropriate to voluntarily inform shareholders of the Transaction.


Johannesburg
3 June 2025

Sponsor to Hudaco
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Date: 03-06-2025 10:21:00
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