The Competition Tribunal has granted unconditional approval for the proposed merger between Spec Systems, a provider of printing and mobility technology and solutions, and Bidvest’s Branded Products business.
With operations in Johannesburg, Cape Town and Durban, Spec Systems, provides thermal labels, bar code scanners, ruggedised mobile computers, thermal transfer ribbons, self-adhesive labels, point-of-sale printers, portable label printers, and associated software and consumables.
Bidvest BP provides printers and print technologies, thermal ribbons, self-adhesive labels, bar code scanners, and mobile computers that are ruggedised, or made to withstand wear and tear. It controls several firms including Bidvest Office, Bidvest Paperplus, The Printer Distribution Company, Lithotech Manufacturing Pinetown and Lamobyte.
Last month, the Competition Commission recommended that the Tribunal approve the proposed transaction without conditions, saying it had observed that over the years, Bidvest had acquired multiple businesses in the pertinent product sectors.
However, the commission concluded that the proposed deal was unlikely to significantly reduce or eliminate competition in any market after accounting for prior acquisitions.
“The proposed transaction does not raise significant public interest concerns,” it said.
On Wednesday, the tribunal concurred and approved without conditions.
With Spec Systems fully managed by Bidvest BP after the expected merger, Bidvest will be able to pursue its strategic objectives of expanding and growing through regional, product, and service diversification.
Armed with a €395m global war chest and R16bn locally for acquisitions, Bidvest concluded 11 acquisitions in the financial year to end-June.
By purchasing Consolidated last year, Bidvest’s Services International business expanded its presence in Australia to include the two biggest states.
RHS, a hygiene services business in Singapore, was also acquired and marked the group’s first foray into the Asia-Pacific region.
Bidvest strengthened its packaging portfolio by acquiring Green Home, a manufacturer of biodegradable packaging while its BidAir Cargo increased its exposure to cargo movement by acquiring Interloc, a domestic freight aggregator, allowing for increased efficiency. Bolt-on acquisitions to expand facilities management and hygiene services were also made globally.
JSE-listed Bidvest also has several acquisitions in the pipeline at various stages with the larger one being the acquisition of Citron Hygiene LP from Birch Hill Equity Partners and other investors, which awaits UK regulatory approval.
In June, the Tribunal gave the go-ahead for Bidvest’s planned acquisition of the German supplier of roadworthy tests Dekra Automotive, bringing it a step closer to fully realising an expanded diverse, niche service offering in its automotive segment.
Trading at R277.54 on Wednesday, Bidvest shares have risen 9% in the last six months.
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