GREENCROSS SECURES CITY FARMERS FOR $205M

Written on the 16 June 2014

GREENCROSS SECURES CITY FARMERS FOR $205M

GREENCROSS Limited (ASX:GXL) has strengthened its grasp on the pet care sector, after acquiring Western Australia-based retailer City Farmers for $205 million.

Quadrant Private Equity and other shareholders agreed to the deal, which consists of 42 locations and opportunities to expand the veterinary brand in-store.

City Farmers is forecast to deliver annual revenue of approximately $120 million and earnings before interest, tax, depreciation and amortisation of $20 million in FY15.

The acquisition is believed to be earnings accretive in FY15 for Greencross shareholders, while sales for FY14 are expected to tip $555 million.

Greencross CEO Jeff David says the move will strategically expand the company’s national footprint.

“The combination of Greencross and City Farmers brings together two of Australia’s outstanding pet specialists and increases our exposure to the Western Australian market.

“The transaction underscores our commitment to becoming the leader in the rapidly growing pet care market,” he says.

The acquisition will be funded through a combination of new debt and equity, expanding the network to 285 stores and clinics across Australia and New Zealand.

The announcement comes off the back of an improved financial outlook, to achieve full year net profit after tax of $21.5 million.

The Greencross and Mammoth merger in January upped a previous guidance of 31.5 cents earning per share (EPS), to 33 cents in FY15.

Following the City Farmers acquisition, EPS in FY15 is expected to reach up to 36 cents.

Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter