Sharechat Logo

Metro Glass crosses Tasman with A$43.1M Aust Glass acquisition

Friday 12th August 2016

Text too small?

Metro Performance Glass, which holds more than half of New Zealand's glass processing market, has made a move across the Tasman with the purchase of Australian Glass Group for A$43.1 million.

The Auckland-based company has agreed to buy the third biggest glass processor in Victoria and New South Wales in a debt-funded acquisition to double the company's bank borrowings to about $100 million, it said in an announcement to the NZX. The deal is scheduled to settle by the end of this month and Metro Glass expects to incur short-term capital spending "in order to benefit from specific market opportunities" and to face one-off costs of $1 million.

"AGG’s specific focus areas of detached dwellings and alterations and additions have a relatively stable growth outlook, which coupled with the growth of double glazed windows and higher specification glass, provides an attractive market opportunity both in the short and long term," chief executive Nigel Rigby said. "Metro Glass produces significantly more double glazed units week to week than any other player in Australia or New Zealand and has developed considerable manufacturing and distribution core competencies, which combined with our expertise in processing high performance glass, will benefit the AGG business and its customers."

Metro Glass posted its maiden profit as a listed company in May, benefiting from increased construction activity even as supply shortages meant some work was slow to start.

AGG generated annual earnings before interest, tax, depreciation and amortisation of A$8 million on A$45 million of revenue, which Metro Glass expects will boost its own earnings from the first year. The Victoria-based company is currently owned by the Trawalla Group, which manages an investment portfolio for Melbourne's Schwartz family.

Metro Glass shares last traded at $1.95 and have gained 13 percent so far this year.

(BusinessDesk)

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report