Australia's Metcash acquires three businesses for $363 million (updated)

Metcash

04/02/2024 23:14

(Adds details on deals)
       Feb 5 (Reuters) - Australian supermarket wholesaler
Metcash  MTS.AX  said on Monday it entered deals to acquire
three businesses for a total enterprise value of A$558.5 million
($363.47 million) for furthering diversification and growth. 
        The deal includes acquisition of private food services
provider Superior Food Group for A$412.3 million.   
  
        “Metcash is the logical owner of Superior Food, and the
acquisition cements our position as the largest wholesaler and
distributor of food to independent businesses in Australia,"
Metcash CEO Doug Jones said.
  
    Metcash will also buy construction firm Bianco Construction
Supplies and Frame & Truss operator Alpine Truss for A$82.2
million and A$64 million, respectively, it said in a statement.
        The separate deals are expected to result in combined
annualised synergies of A$19 million.
  
        The company will fund the acquisitions via a fully
underwritten A$300 million placement and A$278 million from
existing cash reserves and existing available debt facilities. 
  

($1 = 1.5366 Australian dollars)

 (Reporting by Roshan Thomas and Poonam Behura in Bengaluru;
Editing by Lisa Shumaker and Chizu Nomiyama)
 ((Roshan.Thomas@thomsonreuters.com;))