Trellidor sells Taylor Blinds and NMC for R90 million
Trellidor sells Taylor Blinds. File
Image: File
Trellidor, a leading manufacturer and distributor of custom-made physical security barriers, has confirmed that it has entered into a sale of shares and claims agreement with Sole Ceramics, along with Trellidor Innovations (Taylor Blinds) and Trellidor Decor (trading as NMC South Africa).
As part of the deal, Trellidor will sell 100% of the ordinary share capital of Taylor Blinds and NMC, as well as any outstanding claims owed by the businesses to Trellidor.
Trellidor has undertaken a strategic review of its operations and concluded that the Taylor Blinds and NMC businesses have not performed as expected since their acquisition. The lack of operational synergies between these businesses and Trellidor’s core security products, along with a return on capital that has fallen below expectations, has prompted the decision to dispose of the businesses.
The sale is part of a broader plan to refocus the company’s efforts on its primary business, reduce debt, streamline group overheads, and improve overall return on capital. This move is expected to enhance shareholder value in the long term.
The total purchase price for the Sale Equity will be based on the consolidated net tangible asset value (NAV) of Taylor Blinds and NMC. This includes the fair value of their assets, excluding certain items such as intangible assets and goodwill. The purchase price will escalate from July 1, 2025 up to the closing date, at a rate equal to the prime rate, but will be capped at R90 million.
In terms of the unaudited condensed consolidated interim financial results of Trellidor for the six months ended December 31, 2024 the net asset value of Taylor Blinds amounted to R42m and the net asset value of NMC amounted to R5.1m, while the attributable operating profits before interest and taxation of Taylor Blinds amounted to R7.7m and R1.2m for NMC.
"The Disposal will refocus the Group on the Trellidor business, further reduce debt, facilitate reduction in group overhead, enhance return on capital and open other opportunities for capital re-allocation, designed to restore shareholder value," the group said.
The effective date of the transaction will be June 30.
BUSINESS REPORT