Argent buys paint and ladder maker

Steel merchant Argent Industrial will buy paint and ladder maker, Paint & Ladders, for R57 million in a deal that would diversify its product offering, it has announced.

The purchase amount will be settled through cash payment of R16.3 million and the issue of 2.5 million shares at R16.17 each.

The deal, which is subject to the approval of the Competition Commission, is effective March 1 2008.

"The Paint & Ladder products are well know brands and this adds more credence to the fact that Argent's diversification is well on track," the group said.

Paint & Ladder is a national company with R200 million annual turnover, which could add 5.5% to the Argent headline earnings.

At 9:38, Argent shares were flat at R17.90.

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