Australian food wholesaler Metcash said on Monday it is acquiring three different companies, including Quadrant-owned Superior Food, for a total value of A$558.5 million ($A363.47 million).
The acquisition of private food service provider Superior Food Group, which has a large network of 600 suppliers and operates 23 stores across Australia, is valued at approximately A$412.3 million, the food wholesaler said in a statement.
Superior Food founder and CEO Craig Phillips will continue to lead the company within the Metcash Food Division.
“Metcash is the logical owner of Superior Food and the acquisition solidifies our position as the largest wholesaler and distributor of independent food products in Australia,” said Metcash CEO Doug Jones.
In its statement, Metcash said it will also buy construction company Bianco Construction Supplies and frame and truss operator Alpine Truss for A$82.2 million and A$64 million, respectively.
The separate transactions are expected to result in combined annual synergies of A$19 million and will be accretive to earnings per share in the mid-single-digit range upon completion of the transaction.
Metacash will fund the acquisitions through a fully underwritten placement of A$300 million and A$278 million from existing cash reserves and available credit facilities. ($1 = 1.5366 Australian dollars) (Reporting by Roshan Thomas and Poonam Behura in Bengaluru; Editing by Lisa Shumaker, Chizu Nomiyama and Rashmi Aich)
2024-02-05 02:07:20
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