South African Flooring Firm on Acquisition Trail

Johannesburg, South Africa, February 26, 2008--Resilient and rubber flooring maker Safic Holdings is on the acquisition trail as it plans to benefit from increased government infrastructure spending and exports to other African countries this year.

The acquisition of Centurion Aluminium and Glass last year was the first in a number of planned acquisitions, but the company declined to provide more details, merely saying Safic would buy businesses that would expand its product offerings.

The company said it would fund planned acquisitions by a combination of cash, debt and equity, but did not disclose how much Safic planned to spend.

Buoyed by the region's boom in construction, Safic revenues were up 11 percent over the last six months.

The company stands to benefit from flooring contracts as the government accelerates spending on the building of classrooms, healthcare facilities, stadiums, police stations and prisons.

Some major contracts Safic's flooring division has won include 10 stadium upgrades for the Soccer World Cup in 2010, phase two of Baragwanath Hospital, and OR Tambo and King Shaka airports and classroom upgrades.