SHINE ADDS TO ITS CABINET
29 October 2014,
SHINE Corporate Limited (ASX: SHJ) will acquire Sciaccas Lawyers, a personal injury practice, and Sciaccas Family Lawyers.
The initial consideration of the deal will be $8.75 million with deferred consideration subject to earn-outs linked to ongoing and increased financial performance of the acquired entities.
Sciaccas founder Con Sciacca, former federal government minister, will continue in the business following the acquisition.
SHJ managing director Simon Morrison (pictured) says the acquisition is a good fit for the group’s overall strategy.
“This acquisition is an excellent opportunity to leverage Sciacca’s excellent and long standing relationships with both key clients and industry groups alike,” says Morrison.
“It’s consistent with our ‘inch wide, mile deep’ focus on damages based plaintiff litigation, with Sciaccas complementing Shine’s existing personal injury businesses and providing access to additional channels to market.”
The $8.75 million initial consideration equates to four to five times of the estimated financial year 2015 EBIDTA, with similar multiples maintained on the payment of deferred consideration for growth in earnings through the earn-out period.
The acquisition will be funded from Shine’s existing cash and debt facilities and is expected to be earnings per share accretive in financial year 2015.
It will be completed by end of October 2014, but will contribute to SHJ’s earnings from 1 July 2014.