Flooring will never win any prizes for being the world’s s e x i est business, but t hat doesn’t mean that this industrial player doesn’t have the potential to attract a few wolf-whistles along the way.
A f e w weeks a go, Finweek met with Accentuate management and was i mpressed with t he team’s plans for growing their business and recently, it was announced that Accentuate subsidiary Floorworx Africa (Pty) Limited would acquire Suntups Wooden Flooring for R8.2m. The transaction would be f unded by the issue of additional Accentuate shares.
Floorworx will not be acquiring the wood trading division of Suntups, but only its f looring division, which Accent uate says is “t he l argest supplier of engineered wooden f looring in South Africa.”
Management gets a thumbs up for focusing on only buying businesses which directly compliment their goals.
One of the key appeals for Finweek is that Accentuate is a market leader in its area. Seventy-seven percent of its revenue comes from its Floorworx business, which in turns owns 70% of the resilient f looring market in South Africa.
The balance of the revenue comes from Safic Exchange ION, a joint-venture with ION from India. Safic provides blended chemicals for the industrial and retail markets, and the ION joint-venture gives investors access to the potentially lucrative water treatment market in South Africa.