- Ashley Services Group (ASH) agrees to acquire Owen Pacific Workforce (OPH) in a deal worth a potential $15.9 million
- OPH provides seasonal workers to the Australian horticultural industry, mostly sourced from Tonga and Vanuatu
- The purchase price for the takeover will be based on OPW’s EBITDA for the 2023 financial year, which is expected to land between $4.1 million and $5 million
- Ashley Services Group will fund the initial purchase consideration payment of around $7.1 million from newly-extended bank facilities with Westpac
- ASH shares are up 8.22 per cent and trading at 78 cents at 3:41 pm AEDT
Ashley Services Group (ASH) has agreed to acquire a 100 per cent interest in Owen Pacific Workforce for an expected fee of between $14.2 million and $15.9 million.
Owen Pacific Workforce (OPW) provides seasonal workers to the Australian horticultural industry, mostly sourced from Tonga and Vanuatu.
Ashley Services Managing Director Ross Shrimpton said the acquisition bolstered the company’s position as a national labour-hire provider.
“The acquisition of OPW is a significant expansion opportunity for Ashley, broadening both our sourcing options for labour and our industry sector coverage,” Mr Shrimpton said.
“OPW has a strong management team and proven track record, and we believe the backing of Ashley Services will place OPW in a stronger position to convert growth opportunities in other industry sectors from its already well-established horticultural base.”
The acquisition price will be based on OPW’s EBITDA for the 2023 financial year, which is expected to land between $4.1 million and $5 million. The deal is expected to be completed on February 6, 2023, and Ashley said it was expected to be earnings-per-share accretive in the 2024 financial year.
ASH will fund the initial purchase consideration payment of approximately $7.1 million from newly extended bank facilities with Westpac.
The remaining purchase consideration is expected to be paid in two near-equal amounts in September 2023 and 2024.
ASH shares were up 8.22 per cent and trading at 78 cents at 3:41 pm AEDT.