By Stuart Condie
SYDNEY–Metcash will pay up to 558.5 million Australian dollars (US$363.8) for a trio of businesses that the Australian supermarket supplier and hardware retailer expects will strengthen its growth prospects.
The ASX-listed company on Monday said that it would use a combination of existing cash and debt facilities, and up to A$325 million in fresh equity, to fund the acquisition of food distributor Superior Food, building-materials supplier Bianco Construction Supplies, and building frame operator Alpine Truss.
It said it expects the acquisitions to be earnings-per-share accretive in a percentage in the mid-single digits, including annualized synergies of about A$19 million.
Metcash will raise A$300 million in a fully underwritten institutional placement and up to A$25 million in a share purchase plan. It has A$278 million in cash and debt available for use, it added.
Write to Stuart Condie at [email protected]
Read the full article here
