HUDACO INDUSTRIES LIMITED
                           (Incorporated in the Republic of South Africa)
                              (Registration number 1985/004617/06)
                              Share code: HDC & ISIN: ZAE000003273
                                             (“Hudaco”)


   VOLUNTARY ANNOUNCEMENT REGARDING THE ACQUISITION OF THE TRADING ASSETS AND
                   LIABILITIES OF PLASTI-WELD CC (“PLASTI-WELD”)




   1. INTRODUCTION
      Shareholders are advised that Hudaco has signed an agreement with Plasti-Weld to acquire
      its trading assets and liabilities (the “Plasti-Weld Business”) (the “Transaction”) with effect
      from 1 December 2023 (the “Effective Date”).

       The purchase consideration (the “Consideration”) will be based on the annual profit after tax
       of the Plasti-Weld Business for the three preceding financial years and the first year after the
       Effective Date. The maximum Consideration is R56 million, which will be funded from cash
       generation and existing facilities of Hudaco.

   2. DESCRIPTION OF THE PLASTI-WELD BUSINESS
      The Plasti-Weld Business is an importer and stockist of plastic welding equipment, hot-air
      tools, specialised test and inspection equipment and thermo cutters. It also manufactures
      plastic welding rod and employs 15 staff, all based in Gauteng.

   3. RATIONALE FOR THE TRANSACTION
      Hudaco specialises in the importation and distribution of selected high-quality branded
      automotive, industrial and electronic consumable products, mainly in the southern African
      region. One of Hudaco’s key strategies is to acquire new businesses in similar fields of activity
      when the opportunity arises.

       The purchase of the Plasti-Weld Business is consistent with Hudaco’s acquisition strategy and
       is an ideal fit for the engineering consumables segment of Hudaco, as a bolt-on to its existing
       thermoplastic pipes and fittings business, Astore Keymak, which also sells plastic welding
       equipment. They will work together in exploiting synergies, optimising their route to market
       and expanding the combined customer base. Hudaco will be able to utilise its experience and
       expertise in value-added distribution to enhance the position of the Plasti-Weld Business,
       resulting in long term benefits to shareholders.

   4. CATEGORISATION
      The Transaction falls below the threshold of a category 2 transaction in terms of the JSE
      Limited Listing Requirements. Nevertheless, Hudaco’s board of directors believes it is
      appropriate to voluntarily inform shareholders of the Transaction.


Johannesburg
30 November 2023

Corporate advisor and sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited