Strategic rationale for the acquisitions
Highlights
1
Three strategically aligned acquisitions announced today that deliver further diversification, resilience and provide Metcash with
an even stronger growth trajectory
Superior Food: Significant acquisition in foodservice market cements Metcash's position as the largest wholesaler and distributor of Food
to independent businesses in Australia
Bianco Construction Supplies: Supports IHG's 'Whole of House' strategy and broadens offer and presence in South Australia and
Northern Territory
Alpine Truss: Supports IHG's 'whole of house' strategy through expanding Australian network of frame and truss operations
2 Consistent with focus on replicating successful pillar growth strategies across Metcash Group
3 Economically compelling:
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Attractive prices leading to EPS mid-single digit accretion²
Margin accretive³
Adds $1.4bn in annual sales and $60m* EBIT (excluding synergies of $19m)
Significant synergy opportunities
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Proven integration track record
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Extensive due diligence process
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Equity raising launched to provide partial funding of these Acquisitions
Bianco Construction Supplies - does not include Bianco Reinforcing, Bianco Hire or Bianco Precast.
1.
2.
See Appendix B for accretion details.
3.
4.
The Acquisitions are margin accretive at three levels, each prior to synergies: in respect of the Food business (including Superior Foods), the IHG business (including Bianco and Alpine Truss) and also in relation to the Metcash Group (including all Acquisitions). Margin
represents EBIT (excluding synergies) divided by sales (including charge through sales) and is based on the Oct-23 LTM results per slide 40 and accretion details are shown on slide 50.
Reflects Oct-23 LTM as detailed on slide 40.
Metcash
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