Trellidor dumping two businesses for millions

Trellidor has announced plans to sell two of its businesses, Taylor Blinds and NMC, for up to R90 million.

Trellidor Holdings is the leading manufacturer of custom-made security barriers in South Africa and Africa. The company manufactures and distributes security gates and window burglar 

Trellidor was listed on the JSE in 2015, after acquiring two other well-established business entities.

These two companies are Taylor Blinds, which manufactures and distributes blinds and shutters, and NMC Decoration, which imports and distributes mouldings and skirtings. 

These are the two companies Trellidor now plans to sell to Sole Ceramics, which is owned by the JC Family Trust.

Trellidor announced this sale to shareholders on Tuesday, 1 July, explaining that it will sell 100% of the ordinary issued share capital of Taylor Blinds and NMC.

This sale comes as Trellidor is looking to restore shareholder value, with the company’s board reviewing its strategic options. 

The company explained that, since their acquisition, the Taylor Blinds and NMC businesses have failed to deliver to expectations. 

It said no meaningful operational synergies exist between Taylor Blinds, NMC, and Trellidor’s core business. In addition, the return on capital for Taylor Blinds and NMC falls below that of Trellidor. 

Therefore, Trellidor hopes that disposing of these businesses will refocus the group on the Trellidor business, reduce debt and overhead, enhance return on capital, and open other opportunities for capital re-allocation.

Trellidor’s interim financial results for the six months ended 31 December 2024 showed that the Taylor Blinds’ net asset value amounted to R42.0 million, while NMC’s was R5.1 million.

The attributable operating profits before interest and taxation of Taylor Blinds amounted to R7.7 million and R1.2 million for NMC.

Regarding the purchase price for the two businesses, Trellidor explained that it will escalate from 1 July 2025 up to but excluding the closing date. However, the price is capped at R90 million.

The company said the proceeds from this sale will be used to reduce its debt and strengthen the group’s liquidity.