S.Africa: JEWS: Ellies buying Bundu Power for R202.6 million
Ellies informed shareholders on Wednesday that it plans to acquire backup power specialist Bundu Power for R202.6 million.
Bundu Power is comprised of Magetz Electrical cc and Power On Wheels cc, which is owned by Heidi von Broembsen, Nicholas von Broembsen, Suzanne von Broembsen, and Colin Sykes.
Founded in 2005, Bundu Power specialises in the distribution and rental of generators, and the distribution and installation of solar and related products.
The company provides alternative energy systems for residential, commercial, industrial, hospitality, agricultural, and recreational users.
Ellies said the purchase would be settled as follows:
An initial payment of R72.6 million
The balance payable through three earn-out payments not exceeding R130 million in total after the 2023, 2024, and 2025 financial years.
Ellies said it intends to fund the acquisition with a combination of equity and debt.
According to Ellies, Bundu Power’s latest financial statements reveal it has net assets of R48.7 million and after-tax profits of R11.2 million. Its financial year ended on 28 February 2022.
For the financial year ending on 28 February 2023, Bundu Power estimates R20.4 million profit after tax.
In addition to a standard due diligence and regulatory clearance, Ellies will also require that the owners sign employment and non-compete agreements before 30 April 2023.