TEN
29/07/2014 17:08
GENERAL
REL: 1708 HRS Tenon Limited
GENERAL: TEN: Tenon Increases Market Presence in Australia
TENON INCREASES MARKET PRESENCE IN AUSTRALIA
29 July 2014 - Tenon announced today that it will be expanding its business
in Australia by entering into a new agreement with Masters Home Improvement
("Masters") to supply and service a full range of interior moulding and
millwork products to all of Masters' current and future stores, Australia
wide. Masters is a joint venture between Woolworths and Lowe's Home
improvement ("Lowe's"), currently with 49 large-format home centre stores
across the country, and with an aspiration to grow this to 150 stores.
To conduct this new business, Tenon has established Empire Mouldings
Australia as a new operation (alongside its existing Tenon Australia
operation that was established in 2012), to provide Tenon's unique
proprietary service model and extensive product range to Masters.
Empire Mouldings Australia will replicate the service offering provided to
Lowe's in North America by Tenon's 100% US-based subsidiary - The Empire
Company. Product will be supplied primarily from Tenon's large clearwood
manufacturing site in Taupo (NZ) and from its Tenon Australia manufacturing
operation in Victoria, with supplemental product sourced from Tenon's global
supply chain as required.
Tony Johnston, Tenon's Chief Operating Officer, said, "We are very pleased to
be offered the opportunity to support Masters in the Australian home
improvement and building materials retailing sector. We are excited by the
prospect of growing with Masters, and replicating the successful model we
have developed in the US over the past 20 years, as Masters expands its
market share in Australia. This is an important step in Tenon's market
development, demonstrating the potential of our fully integrated
manufacturing and full- service distribution business platform to build long
term value for our customers and Tenon."
Murray Johnston, Masters Commercial General Manager, commented, "Masters is
pleased to bring on Tenon and Empire Mouldings Australia to help us grow our
share of the wood products market in Australia. Tenon's proven track record
in this regard in the USA gives us confidence that we will enjoy further
success as we continue to roll out new stores throughout Australia."
Due to the initial establishment and set-up costs associated with this
expansion, a break-even result for fiscal 2015 for this new venture is
anticipated, with a positive contribution to Tenon's Group results expected
thereafter.
ENDS
End CA:00253237 For:TEN Type:GENERAL Time:2014-07-29 17:08:46
