Strategic rationale for the acquisitions
Acquisition rationale
BIANCO
CONSTRUCTION & INDUSTRIAL
SUPPLIES
AM ALPINE TRUSS
Roof Truss Wall Frame Floor Truss
1 Supports IHG's ‘Whole of House' growth strategy
2
Accelerates IHG's network expansion
Expanding Frame & Truss (F&T) operations into Victoria and in South Australia / Northern Territory
adding a large trade operation with a strong focus on foundation stage of a house
Increases market share in the attractive trade hardware category, through the addition of 1 Alpine
Truss location and 10 Bianco locations
3
4
5
6
7
Highly complementary to IHG's existing network
High quality management team
with proven track record of growth
and enduring customer relationships
Materially enhances financial scale
Delivers additional scale, enhanced offering and customer proposition, network benefits and
expanded capability and capacity
Led by management with average 20+ years' experience who are committed to remain, with strong
alignment to our collective growth ambitions
Adding $166m of sales and $24.5m of Underlying EBITDA (before expected annualised synergies)1
Strong IHG track record in value
accretive M&A and synergy extraction
High confidence in ability to extract combined annualised (run-rate) synergies of c. $5.1m at the end
of year 2 post completion
Financially attractive returns
Both acquisitions are EPS accretive on a pro forma Oct-23 LTM basis including synergies²
1.
Refer further details on slides 32 and 33.
2.
Refer pro forma financial information detailed on slide 40. Assuming the debt/equity funding mix for each individual acquisition is based on the EV of each individual acquisition as a proportion of the aggregate EV of all Acquisitions plus transaction costs.
Metcash
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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