Strategic rationale for the acquisitions
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Alpine Truss
ALPINE TRUSS
Roof Truss Wall Frame Floor Truss
Business overview
One of Australia's largest Frame &
Truss operations, operating since
2002
Located in Wangaratta, Victoria
(35,000m² site)
Well equipped, well run operation
with a long history of capital
investment
Services small to large volume
builders across Victoria and
Southern New South Wales
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Strategic rationale
Frame & Truss is a key element of
'Whole of House' growth strategy
Enables access to house plans
at beginning stages of build
Provides access to previously
under-represented Victoria and
Australian Capital Territory Frame
& Truss markets
Enhanced integration strengthens
customer proposition
Ability to add scale with minimal
additional capex
Attractive Frame & Truss margins
Extends IHG's network of Frame &
Truss operations across Australia
to 24 (of which 12 are wholly
owned by Metcash or partly
owned under joint venture)4
Transaction highlights
EV of $64.0m2, which implies:
6.0x Underlying EBITDA before
expected annualised synergies³
4.8x Underlying EBITDA
including expected annualised
synergies³
Expect to deliver $2.7m of
annualised (run-rate) synergies at
the end of year 2 post completion
From broadening the 'whole of
house' offer to IHG
network, purchasing
scale and shared services
Key financials (pro forma Oct-23 LTM)1
Sales
$46m
Underlying EBITDA (pre-AASB16)
$10.6m (23.0% margin)
Pre synergies
Underlying EBIT (post-AASB16)
$10.5m (22.8% margin)
Pre synergies
Expected annualised synergies (at end of year 2)
$2.7m
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 6.0x is calculated based on the total EV of $64.0m divided by underlying EBITDA (pre-AASB16) of $10.6m (Oct-23 LTM). The implied multiple (including expected annualised synergies) of 4.8x is based on underlying
EBITDA (pre-AASB16) of $13.3m (Oct-23 LTM).
There are 22 Frame & Truss sites in the existing network, and there will be 24 sites after the addition of the Bianco and Alpine Truss sites. Post acquisition, 12 of these sites will be joint venture/company owned and 12 will be independently owned.
Melcash
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
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