Ac­cen­tu­ate

Finweek English Edition - - INVESTMENT -

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.

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