HBY
22/05/2015 09:25
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REL: 0925 HRS Hellaby Holdings Limited
ASSET: HBY: Hellaby adds more businesses to its portfolio
Hellaby Holdings Limited - NZX / Media Release 22 May 2015
Hellaby adds more businesses to its portfolio
Investment company Hellaby Holdings Limited ('Hellaby') today announced the
acquisition of two businesses which will further strengthen its position in
the automotive parts distribution and truck servicing sectors.
On 30 April Hellaby subsidiary New Zealand Trucks Limited acquired Diesel &
Machinery Services Limited ('DAMS'), a Waikato-based company which provides
maintenance, repair and engineering services to the truck industry.
Hellaby has also unconditionally agreed to purchase Melbourne-based JAS
Oceania Pty Limited, an Australian national distributor of auto electrical,
automotive air conditioning and lighting components to repair centres,
workshops, automotive parts distributors and retailers. At settlement date
of 1 June 2015, JAS Oceania will become part of the Hellaby's Automotive
division.
Hellaby Managing Director John Williamson said the total value of the two
acquisitions was less than NZ$25 million, and they were being funded through
existing group debt facilities. The businesses have combined annual revenues
of around NZ$50 million and are expected to collectively increase Hellaby's
annualised EBITDA by around NZ$5 million. The impact on earnings per share
will be positive and immediate.
Mr Williamson said Hellaby was delighted with the acquisitions of JAS Oceania
and DAMS. "Both these businesses are strategically significant and
complementary to existing subsidiaries. Not only are they very good
businesses in themselves, but they will also add further value to Hellaby
through the synergies they will achieve with other businesses in the group."
"JAS Oceania has a highly complementary product range to Hellaby's other
Australian Automotive businesses, Federal Batteries and Diesel Distributors.
Its 19 branch network is scalable and further strengthens Hellaby's
Australian market coverage. We are also pleased that the vendors of JAS
Oceania will remain with the business in leadership positions."
DAMS will significantly strengthen New Zealand Trucks' ability to service
customers in the upper North Island. It brings strong customer relationships
and an excellent workshop facility to the business, and will continue to be
led by one of the vendors."
Mr Williamson said Hellaby was continuing to seek value-accretive acquisition
and divestment opportunities. "The reshaping of our portfolio continues, and
with JAS Oceania and DAMS now successfully added to the group, we are
focusing on further initiatives in the pipeline."
ENDS
Hellaby at a glance
Hellaby Holdings is an NZX-listed investment holding company, which owns a
diversified portfolio of 15 industrial, distribution and retail businesses.
Our vision is to be a leading Australasian investor, based on the value we
add to our portfolio, the returns we deliver to our shareholders and the
calibre of our people.
Hellaby's core purpose is to generate long-term shareholder value by building
better businesses. We achieve this through a combination of performance
improvement and organic growth in the businesses we own, as well as smart
acquisitions and divestments. We describe this strategy simply as 'Buy,
Build, Harvest'.
Our investment portfolio is structured through five divisions - Oil & Gas
Services, Automotive, Equipment, Packaging and Footwear - with 3,000 people
across New Zealand, Australia, Middle East and North America. We have a
variable investment horizon, and our portfolio will evolve as opportunities
arise in target investment areas.
We actively manage our investments through a lean corporate office, and
decentralise leadership and performance accountabilities to our companies.
We seek to generate total shareholder returns superior to the NZX50.
For further information please contact
John Williamson
Managing Director
T +64 9 307 6844
M +64 21 271 4960
Richard Jolly
Chief Financial Officer
T +64 9 307 6844
M +64 27 497 6710
www.hellabyholdings.co.nz
End CA:00264679 For:HBY Type:ASSET Time:2015-05-22 09:25:20
