GREENCROSS SECURES CITY FARMERS FOR $205M

GREENCROSS SECURES CITY FARMERS FOR $205M

GREENCROSS Limited (ASX:GXL) has strengthened its grasp on the pet care sector, after acquiring Western Australia-based retailer City Farmers for $205 million.

Quadrant Private Equity and other shareholders agreed to the deal, which consists of 42 locations and opportunities to expand the veterinary brand in-store.

City Farmers is forecast to deliver annual revenue of approximately $120 million and earnings before interest, tax, depreciation and amortisation of $20 million in FY15.

The acquisition is believed to be earnings accretive in FY15 for Greencross shareholders, while sales for FY14 are expected to tip $555 million.

Greencross CEO Jeff David says the move will strategically expand the company’s national footprint.

“The combination of Greencross and City Farmers brings together two of Australia’s outstanding pet specialists and increases our exposure to the Western Australian market.

“The transaction underscores our commitment to becoming the leader in the rapidly growing pet care market,” he says.

The acquisition will be funded through a combination of new debt and equity, expanding the network to 285 stores and clinics across Australia and New Zealand.

The announcement comes off the back of an improved financial outlook, to achieve full year net profit after tax of $21.5 million.

The Greencross and Mammoth merger in January upped a previous guidance of 31.5 cents earning per share (EPS), to 33 cents in FY15.

Following the City Farmers acquisition, EPS in FY15 is expected to reach up to 36 cents.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Looking for your next sporting adventure? Try Golf Journeys
Partner Content
Golf Journeys, an Australian golf travel company, has big plans in store for golfe...
Golf Journeys
Advertisement

Related Stories

Sunland sells Gold Coast retail precinct The Lanes to Panthera for $45.8 million

Sunland sells Gold Coast retail precinct The Lanes to Panthera for $45.8 million

Developer Sunland's (ASX: SDG) rationalisation of its Queenslan...

Pack your suitcase: ’Do not travel’ advice lifted for outbound Aussies

Pack your suitcase: ’Do not travel’ advice lifted for outbound Aussies

With Australia’s international borders set to progressively r...

Consumers are wise to ‘woke washing’ – but truly ‘transformative branding’ is still possible

Consumers are wise to ‘woke washing’ – but truly ‘transformative branding’ is still possible

With brands increasingly engaging in social change campaigns and le...

Your unvaccinated friend is roughly 20 times more likely to give you COVID

Your unvaccinated friend is roughly 20 times more likely to give you COVID

As lockdowns ease in New South Wales, Victoria and the ACT, and peo...