McPherson’s Limited has acquired a majority share of Home Appliances for $22 million.
The completion of the 82 per cent purchased interest into the Australian importer and distributor of large appliances is expected to occur by the end of March 2013 and is conditional on receiving customary approvals.
The transaction has been structured so that Home Appliances’ remaining equity will be held by key members of its current management team for a minimum period of two years. McPherson’s will have an option to acquire their shares at the end of FY2015 and they will have a reciprocal option to put their shares to McPherson’s at that time.
McPherson’s managing director, Paul Maguire, says the acquisition will generate growth and follows the integration of Footcare International and Cosmex in 2012.
“Home Appliances will extend our Housewares division’s current offering, increasing the division’s contribution to group revenue from approximately 28 per cent to 37 per cent. The acquisition will provide important channel diversification, scale and synergistic benefits, while delivering significant growth opportunities through the ability to leverage the collective brand portfolio into new products, categories and markets,” he says.
Home Appliances has a track record of steady growth with FY2012 gross sales revenue of $41.4 million and normalised FY2012 EBITDA of $5.5 million.
