Pharmaceutical manufacturer Adcock Ingram has reached a deal to buy Plush Professional Leather Care, part of its strategy to diversify into less regulated products in the consumer goods sector.
The group has agreed to buy the entire share capital of Plush for an undisclosed amount, but said historically the business generates revenue in excess of R200m annually.
Plush has a presence in Botswana, Namibia, Malawi and Angola as well as SA, with products including shoe care and tile cleaner. Adcock already competes in the fast-moving consumer goods sector, including through brands such as Panado and skin care through Island Tribe.
“The Plush brand is well established with strong support and awareness from both retailers and consumers,” Adcock said. “The brand has excellent potential for further line extensions into adjacent product categories.”
In morning trade on Wednesday Adcock’s share price was down 2.74% to R39.39, having fallen about 37% over the past 12 months.