Strategic rationale for the acquisitions
Strategic rationale for the acquisitions
Superior
food services
BIANCO ALPINE TRUSS
+
CONSTRUCTION & INDUSTRIAL
SUPPLIES
Roof Truss Wall Frame Floor Truss
2
3
Strengthens and diversifies Metcash's existing Food business – introducing new
customer segments, range expansion, network efficiencies and supply chain benefits
Immediate scale in Foodservice, an attractive growth market - adding $1.3bn sales
and $43.8m Underlying EBITDA (before synergies)
1
Acquisition of a national foodservice distributor to step-change Metcash's
foodservice distribution model, capabilities and reach, driving greater share of
non-retail food wallet, new growth opportunities and synergies
Metcash is the logical owner of Superior Food - Metcash is the only food distributor of
its scale with a supply chain designed to service smaller scale independents
Bolt-on acquisitions of two trade businesses that enhance our network,
offering and proposition, and accelerate our growth strategy in Hardware
1 Supports IHG's 'Whole of House' growth strategy
2
Accelerates IHG's network expansion strategy - adding 11 new trade locations
including two Frame & Truss plants
Highly complementary to IHG's existing network - broadens offering and enhances
customer proposition
3
4
Further M&A opportunity in a highly fragmented ~$21bn market³
4
High quality management teams with proven track record of growth and enduring
customer relationships
5 Highly complementary businesses with $14m+ of expected annualised synergies
5
Materially enhances scale, adding $166m sales and $24.5m Underlying EBITDA (before
synergies)1,2
6
Includes a high-quality management team with proven track record of organic &
inorganic growth and enduring customer relationships
6
Strong IHG track record in value accretive M&A and synergy extraction - annualised
synergies of $5.1m expected at the end of year 2 post completion
7
EPS accretive on pro forma Oct-23 LTM basis (including expected annualised
synergies)
7
Both Bianco and Alpine Truss are each EPS accretive on a pro forma Oct-23 LTM
basis (including expected annualised synergies)
1.
Oct-23 LTM EBITDA presented on a pre-AASB16 basis. Refer to slide 40 for further details regarding the pro-forma financial information.
2.
3.
Bianco Oct-23 LTM sales of $144m is adjusted to exclude existing wholesale sales from IHG to Bianco of $24m, resulting in $120m incremental sales.
Source: Superior Food management estimates.
Melcash
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