Ann: ASSET: STU: S&T to acquire MSL also known as Fortress Fasteners

• Release Date: 17/07/15 08:30
• Summary: ASSET: STU: S&T to acquire MSL also known as Fortress Fasteners
• Price Sensitive: No
• Download Document  2.69KB

					STU
17/07/2015 08:30
ASSET
PRICE SENSITIVE
REL: 0830 HRS Steel & Tube Holdings Limited

ASSET: STU: S&T to acquire MSL also known as Fortress Fasteners

Steel & Tube Holdings Ltd (S&T) has entered into an agreement to acquire the
business and assets of Manufacturing Suppliers Limited and its related
companies (MSL).

MSL is one of the largest fastenings businesses in New Zealand. Its iconic
Fortress brand was introduced in 1997 and has become a market leader with a
reputation for quality and reliability.

S&T CEO Dave Taylor says: "The acquisition provides an excellent opportunity
for our customers, offering them greater fastenings expertise and access to a
wider range of products. It will strengthen our offering in the fastenings
space and reinforce our position as New Zealand's leading steel distribution
company, providing outstanding steel solutions to construction, manufacturing
and rural businesses throughout the country.

Together we can deliver even more innovative products and offerings to our
combined customer base.

Our customers will continue to see the Fortress Fasteners brand and the
business will continue to operate under the name MSL."

The consideration for the acquisition is $32 million, $26m in cash and $6m
shares in S&T (subject to any adjustment under the sale and purchase
agreement).  The transaction is conditional on normal pre-completion matters
and S&T expects completion to occur within about 6 weeks.

Mr Taylor added: "This is all about growing, innovating and competing in a
rapidly changing market."

This is the second acquisition that S&T has made in a little over 12 months,
and continues its strategy of consolidation of key steel distribution sectors
in NZ. S&T acquired Tata Steel Australasia in April 2014.

ENDS
About S&T
S&T is New Zealand's leading supplier of steel products and services. It has
a nationwide service and distribution network in 48 locations and is listed
among the top 50 companies on the New Zealand Stock Exchange. It caters to
numerous sectors across the New Zealand economy including commercial and
residential construction, manufacturing, rural and heavy and light
engineering. Its product range includes the Hurricane, Atlas and ComFlor
brands.
About MSL
MSL began as a small operation in New Lynn, Auckland in 1980.  It now has
eight branches nationwide and employs over 100 people. Its own brand,
Fortress, was introduced in 1997 and has become a market leader with a
reputation for quality and reliability. MSL stocks over 200 million items and
10,000 product lines and is one of the largest fastening wholesalers in New
Zealand.

For more information contact Dave Taylor on (04) 5705001 or 021 2449446
End CA:00267092 For:STU    Type:ASSET      Time:2015-07-17 08:30:10