GREENCROSS ANNOUNCES MERGER WITH MAMMOTH
19 November 2013,
GREENCROSS LTD has proposed it will merge with Mammoth Pet Holdings Pty Limited to create the largest integrated pet care company in Australasia.
The veterinary group intends to acquire 100 per cent of the equity in Mammoth, in exchange for Greencross shares – making the total 90.3 million post-merger.
The combined company is expected to generate more than $440 million in revenue and more than $50 million in EBITDA in FY14.
Greencross CEO Glen Richards says the merger will bring about a unique offering, which will augment the brand’s business model.
“Combining Mammoth’s expertise in pet specialty retailing with Greencross’ market-leading veterinary services will create a unique offering for pets and pet parents in Australasia.
“This is a well-established business model in the US and UK and one which we believe will benefit our customers as well as our shareholders.”
Several board changes have been proposed, including Mammoth executive chair and non-executive director of Greencross Jeff David taking over as chief executive.
Mammoth managing director Paul Wilson will lead pet retailing, Greencross managing director Glen Richards will take on veterinary services and non-executive director of Greencross will replace Andrew Geddes as chairman.
The move will expand the network to 224 stores and clinics across the region, with Mammoth operating as Pet Barn in Australia and Animates in New Zealand.
The merger is subject to shareholder approval, with a meeting to be held in January next year.