Metcash Limited (ASX:MTS) revealed plans to acquire three businesses, enhancing diversification and strengthening growth. The acquisitions include Superior Food, a prominent Australian foodservice distributor (AU$412.3million), aligning with Metcash’s Food strategy. The move solidifies Metcash's position as Australia’s largest food wholesaler. Additionally, Bianco Construction Supplies (AU$82.2 million) and Alpine Truss (AU$64.0 million) support Independent Hardware Group’s expansion plans, expecting annual synergies of ~AU$19 million.
The acquisitions are projected to be mid-single digit EPS accretive, excluding synergies, and margin accretive at various levels. Funding involves a AU$300 million institutional Placement and a non-underwritten Share Purchase Plan up to AU$25 million for eligible shareholders. CEO Doug Jones expressed excitement, stating the acquisitions would unlock shareholder value, fortify resilience, and foster an even more robust growth trajectory. Superior Food CEO Craig Phillips anticipates continued growth with Metcash's support.
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