EBO
31/10/2014 11:41
ASSET
REL: 1141 HRS Ebos Group Limited
ASSET: EBO: EBOS Announces Acquisition of BlackHawk Premium Pet Care
31 OCTOBER 2014
EBOS ANNOUNCES ACQUISITION OF BLACKHAWK PREMIUM PET CARE
- EBOS has acquired BlackHawk Premium Pet Care Pty Ltd for NZ$57.8 million
(A$52 million)
- Acquisition is immediately earnings per share accretive and is effective 31
October 2014
EBOS Group Limited is pleased to announce that it has acquired BlackHawk
Premium Pet Care Pty Ltd ("BlackHawk") for NZ$57.8 million as part of the
company's expansion into the fast-growing premium pet food sector.
EBOS Group Chief Executive, Patrick Davies said the BlackHawk acquisition
would be immediately earnings per share accretive and has been funded from
the Group's existing debt facilities.
"This acquisition is strategically important for our Animal Care division as
it represents a significant direct investment in the premium pet food
category in Australia, which we estimate to have a market size of
approximately NZ$720 million (A$650 million)," Mr Davies said.
BlackHawk is a rapidly growing premium pet food brand sold exclusively
through Australian pet stores and veterinary clinics.
"Our Animal Care division has a strong route to market for both pet shops and
veterinarians and we look forward to further leveraging the sales growth of
BlackHawk through our existing market channels to drive increased market
share," Mr Davies said.
EBOS' terms with the vendor include the potential for a further earn out
payment by 31 December 2015 upon achievement of certain financial targets.
BlackHawk's brands are focused on the premium pet food market and the
company's products represent some of Australia's fastest growing in the
category receiving strong support from within the breeder community and
independent pet stores.
Mr Davies said growth in the premium pet food market was being driven by key
trends including the ongoing humanisation of pets, consumer preparedness to
increase spend on premium end products and consumer shifts towards products
with better quality ingredients.
"The BlackHawk brand is well placed to continue to take advantage of these
fundamental market dynamics," he said.
EBOS' Animal Care division generates approximately 16% of the Group's overall
earnings. It provides the EBOS Group with a significant and important
diversification of earnings as well as realising higher margins than our
Healthcare business.
"The long term market dynamics for Animal Care are very attractive and
provide us with the confidence to continue to seek assets like BlackHawk to
further improve shareholder returns."
Patrick Davies
Chief Executive Officer
+61 3 9918 5555
End CA:00257073 For:EBO Type:ASSET Time:2014-10-31 11:41:05
