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Sentry Group bought by major multinational

In a R627m deal, the Sentry Group has accepted a cash offer - subject to the usual necessary approvals - of 350c per share for 100% of the company from ADT Fire & Security. ADT is a wholly owned subsidiary of global manufacturing and service giant, Tyco International.

Rob Matthews, Chief Executive of the Sentry Group, said the deal was an excellent one for shareholders, staff and clients. "The offer price of 350c per share is a 60,6% premium over the ruling price prior to the company's cautionary notice last month." he said.

Tyco is a leading manufacturer of fire protection systems and electronic security services. It operates in over 100 countries and had sales of US$ 28,9 bn in the 2000 fiscal year. ADT is the UK's largest installer and provider of electronic security and fire protection systems with sales over US$ 0,5 bn in the last financial year.

The Sentry Group has performed consistently well in the past, posting a 26% increase in operating profit for the six months to 31 December 2001. Earnings per share are expected to have increased by at least 50% for the two-year period to June 2001.

Matthews said: "While it was not our intention to sell the company, the benefits offered by Tyco in terms of technology, resources and international experience are significant and beneficial to both the country and our clients. This deal will result in a substantial long-term capital inflow into South Africa, which is most encouraging."

Alex McNutt, Managing Director of ADT, was equally excited about the acquisition. "Sentry's established leadership and proven technical and operational expertise provide the ideal springboard for our move into the burgeoning South African security industry," he said. "In addition to introducing advanced security and surveillance technology to the group

and its clients, we also intend making electronic security more accessible to the lower income groups."

Senior management at Sentry Group have welcomed the deal, saying that ADT's advanced technology, capital investment and international expertise will give the group a considerable competitive advantage.

For more details contact Pierce Butler, Financial Director, Sentry Group on tel: (011) 788 5547.

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