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, email@example.com **A disclosure statement is available, on request and free of charge.
Disclaimer In accordance with the Financial Advisers Act 2008 (“the Act”) Sharechat is “Class Advice” and any advice or recommendations contained on this webpage is not “Personalised Advice” as defined by the Act. This means Sharechat does not take into account an investor’s particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor’s who require “Personalised Advice” should contact an Authorised Financial Adviser (AFA).
DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to investor’s objectives, financial situation or needs. Before acting on any advice, investors should consider the appropriateness of the advice and IRG recommend that investors should obtain appropriate financial, legal and taxation advice before making any financial investment decision. The report is based on information compiled from public information and private research. IRG have completed the report on a best endeavours basis and do not accept any liability of loss or damage. IRG suggest that clients use this as part of a decision making process and check key data before making any investment decisions.
Employees may have an interest in the securities discussed in this report.