Strategic rationale for the acquisitions
Bianco Construction Supplies
•
Business overview
Servicing the South Australian
and Northern Territory Trade
market for >40 years
Specialises in building materials -
servicing builders, concreters,
bricklayers and landscapers
Products include:
Reinforcing mesh, concrete
slab hardware, structural steel
and sand and soil
Timber, panels and
sheeting, safety and other
associated products including
specialty tools
Ten sites (across greater Adelaide,
Whyalla, Roxby Downs and
Darwin5). Includes Frame & Truss
plant in Adelaide.
Strategic rationale
Supports IHG 'Whole of House'
growth strategy
Broadens IHG's offering and
presence in South Australia and
Northern Territory
Provides access to key trades not
widely serviced by the current
network
Delivers additional volume across
IHG core categories (timber and
building materials)
Highly complementary to
Metcash's existing company
owned K&B business and to
Independents in South Australia
and Northern Territory
Transaction highlights
EV of $82.2m² implies:
5.9x Underlying EBITDA before
annualised synergies³
5.0x Underlying EBITDA
including annualised
synergies³
Expect to deliver $2.4m of
annualised (run-rate) synergies at
the end of year 2 post completion
From broadening product
offer available to the network,
operational efficiencies
and shared services
BIANCO
CONSTRUCTION & INDUSTRIAL
SUPPLIES
Key financials (pro forma Oct-23 LTM)1
Sales
$144m
($120m incremental to Metcash4)
Underlying EBITDA (pre-AASB16)
$13.9m (9.6% margin)
Pre synergies
Underlying EBIT (post-AASB16)
$13.0m (9.0% margin)
Pre synergies
Expected annualised synergies (at end of year 2)
$2.4m
Refer to slide 40 for further details regarding the pro forma financial information, which reflects results for Oct-23 LTM.
Further details of the purchase price are included in Appendix A.
The implied acquisition multiple (before expected annualised synergies) of 5.9x is calculated based on the total EV of $82.2m divided by underlying EBITDA (pre-AASB16) of $13.9m (Oct-23 LTM). The implied multiple (including expected annualised synergies) of 5.0x is based on underlying
EBITDA (pre-AASB16) of $16.3m (Oct-23 LTM).
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.
1.
2.
3.
4.
5. Bianco Darwin is a franchise operation.
Metcash
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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