Metcash has entered into binding agreements to acquire three “strategically aligned” businesses.
The company plans to buy Superior Food (for up to $412.3 million), Bianco Construction Supplies (for $82.2 million), and Alpine Truss (for $64 million) with a fully underwritten $300 million placement and $278 million from existing cash and debt.
Metcash Group CEO Doug Jones says the company is delighted to announce three “strategically aligned, synergistic and financially compelling acquisitions that accelerate our growth strategy”.
“The acquisitions unlock substantial shareholder value and build on our track record of disciplined and accretive capital allocation. They also deliver further diversification and resilience to the Group and provide Metcash with an even stronger growth trajectory,” he says.
“The acquisitions provide a range of benefits for both Metcash and our network customers, which will allow us to continue ‘Championing successful independents’ in support of thriving local communities, which is at the heart of everything we do.”
Mr Jones says Metcash is thrilled to be acquiring Superior Food, an “industry leading player in the Australian foodservice market with a track record of above-market growth”.
“Metcash is the logical owner of Superior Food, and the acquisition cements our position as the largest wholesaler and distributor of food to independent businesses in Australia,” he says.
“Superior Food provides a compelling opportunity to expand in an attractive and adjacent growth market through an industry leading player with an established national platform for future growth. The combination of the two businesses unlocks diversification benefits, procurement savings, range expansion and extends our purpose of ‘Championing successful independents’.
“Food distribution to independents is a business we know well. This, together with our proven integration track record, provides confidence in our ability to unlock value through the immediate scale that this acquisition provides in such a high-growth and fragmented space.”
Superior Food founder and CEO Craig Phillips says his company has achieved significant growth, evolving into a national foodservice provider of scale with the loyal support of its staff, customers and suppliers.
“Metcash’s capabilities and focus on supporting independents uniquely places them to continue our growth,” he says. “We’re proud of our past and excited about the bright future with Metcash.”
Mr Jones says the acquisition of the Bianco Construction Supplies and Alpine Truss businesses are both “strategically and financially attractive and follow our successful track record of consolidation in the fragmented hardware market”.
“The addition of these two businesses support our independent hardware group’s ‘Whole of house’ strategy and will enable us to further increase the proportion of materials we provide over the course of a house build, and extend our supply network across South Australia, the Northern Territory, Victoria and Southern NSW,” he says.