Bidvest : South Africa's Bidvest to acquire British-based PHS Group

South Africa's Bidvest said on Tuesday it would acquire British-based hygiene service provider PHS Group for around 9.1 billion rand ($641.16 million) to expand its presence beyond its home market.

Bidvest, whose business spans freight, automotive, aviation services and offices, said the acquisition would provide strong growth prospects and attractive returns.

The company said PHS Group had generated earnings before interest, tax and amortisation (EBITA) of 37.5 million pounds ($48.50 million) in the financial year to March 2019.

The acquisition, which is still subject to approval, will be funded by third-party external sterling-denominated debt funding and is expected to be completed mid-2020, Bidvest said.

($1 = 14.1930 rand)

(Reporting by Tanisha Heiberg, editing by Louise Heavens)