Altron has sold its Xerox agency, Altron Document Solutions (ADS), to Xerotech, a subsidiary of Bi-Africa Investment Holdings. The asset had been held for sale by Altron for some time.
“The decision to dispose of the ADS business will result in a greater focus on Altron’s core ICT businesses that remain in the portfolio of companies,” Altron told shareholders in a statement issued through the JSE on Thursday.
ADS has represented Xerox in South Africa and the broader sub-Saharan African region for more than 20 years. The company also distributes Duplo finishing equipment and Fujifilm inkjet production machines. “This high invested-capital business is no longer core to Altron’s operating model,” the group said.
The conclusion of the deal is subject to various conditions, including the signing of a distribution agreement between Xerotech and Xerox for South Africa and sub-Saharan Africa.
For the six months ended 31 August 2021, ADS (inclusive of its subsidiary Genbiz, which is also being sold) generated revenue of R500.1-million, earnings before interest, tax, depreciation and amortisation of R5.2-million, operating profit of R400 000 and an attributable loss after tax of R11.2-million.
The net proceeds from the deal will be applied to reduce the debt on Altron’s balance sheet. – © 2022 NewsCentral Media