MORE OUTDOOR FOR SUPER CHEAP
Written on the 4 May 2010
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).