MORE OUTDOOR FOR SUPER CHEAP

Written on the 4 May 2010

MORE OUTDOOR FOR SUPER CHEAP

SUPER Cheap Auto Group will acquire Ray’s Outdoors for $54 million.

In a statement to the ASX, managing director Peter Birtles said the acquisition will position the company as one of Australia’s leading outdoor retailers.

“Ray’s Outdoors will be merged with the BCF Boating Camping and Fishing business to create a market leading Australian Outdoor Leisure Retailer with two distinct brands, operating 103 stores with combined annualised sales of approximately $400 million.

“Over time, we believe there is capacity to grow the network to 160 stores across Australia and New Zealand with approximately $600 million of sales.

“BCF and Ray’s Outdoors are highly complementary brands: BCF provides a deep, destination style offering for the outdoor enthusiast, while Ray’s Outdoors provides a broad outdoor leisure and lifestyle offering for a wider range of consumers. Ray’s Outdoors will extend our offering into a number of new categories, including apparel and outdoor furniture”.

Super Cheap Auto Group expects to be able to provide the capital and expertise to accelerate Ray’s Outdoors’ growth and store roll out.

In addition, Super Cheap Auto Group anticipates a range of synergies with the broader Company, including in procurement, supply chain, marketing, operations management, administrative functions and senior management.

The transaction will be funded through equity issuance, comprising a fully underwritten institutional placement and a non-underwritten share purchase plan.

Ray’s Outdoors has a broad camping and leisure offering with a network of 38 stores operating in 5 states. Ray’s Outdoors, which has been in operation for over 50 years, has a number of privately branded product ranges, such as Wild Country, Outdoor Expedition and Classic Outdoor, specifically designed for Australian conditions

Under the transaction, the acquisition consideration of $54.0 million will comprise $52.5 million of cash and $1.5 million of shares (to be issued at completion based on a 30 day VWAP pre-completion).


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter