Bidvest, one of South Africa’s largest financial services group said it will acquire Noonan, a management services company based in Ireland for USD208 million.
Executive Lindsay Ralphs, chief executive of Noonan said: “Following the unbundling of our food services business last year, we have said that we intend pursuing a strategy of acquisitions that will provide geographic diversification for certain of our core businesses.”
Ralphs said Noonan’s business model was complimentary and would help improve its services, increase its client base, and support international growth through further acquisitions.
According to Reuters, Ralphs told reporters on a conference call that Bidvest would be able to raise $1 billion should it need it and that the firm has identified acquisition targets outside of South Africa.
For the Noonan deal, three-year, variable rate, euro-denominated funding has been secured at an attractive rate, it said. Noonan is based in Ireland and also operates in the United Kingdom, from where 40 percent of its revenue is derived, it said.
Bidvest said the effective date of the transaction is expected to be August. 31, assuming South African Reserve Bank approval.