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Ebos Group

By Dan Stratful

Thursday 26th January 2012

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Ebos Group’s (NZX: EBO ) acquisition of Wellington based Masterpet Group is a major acquisition and the company believes this acquisition offers significant growth opportunities.

EBO will acquire the shares, wholly-owned brands and trading interests of the group in New Zealand and Australia. Masterpet, which has been around for 50 years, is known for its innovation and its market leading position in branded animal healthcare, pet accessories, and premium foods throughout Australasia.

The animal health business is a new direction for EBO, but it reports there are many similarities to its existing businesses.

EBO expects Masterpet will contribute positively to group operations, and be earings per share (EPS) accretive, while a revenue contribution of NZ$170 million is projected in the year to 30 June 2013 with EBITDA of NZ$20 million.

The acquisition will be debt funded, supported by its strong balance sheet, funds on deposit and strong operating cashflow.

In the year ended 30 June 2011, EBO reported revenue of $1.3 billion and EBITDA of $41 million, while a special dividend of 20 cents was paid.

EBO will report its results for the six months ending 31 December 2011 within the next few weeks.

EBO traces its roots back to 1922 and today it is a leading healthcare marketer, wholesaler and logistics provider. In 2010, EBO’s revenue topped $1.3 billion as the company expanded its market position. EBO operates five specialised business units which include: Hospital, Primary Care, Consumer, Aged Care and Rehabilitation, and International. The company has just made a major acquisition by purchasing the Masterpet Group of Companies, its largest acquisition to date.

Status: GROWTH BUY

EBO’s shares today traded at $7.15

For sharemarket and fixed income trading enquires contact:
Dan Stratful at Investment Research Group (IRG)
Authorised Financial Adviser (AFA)
0800 437 8489, 09 304 0232, dan.stratful@irg.co.nz
**A disclosure statement is available, on request and free of charge.


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