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Ann: Trading Update FY2019, page-6

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lexcorp

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12/06/19

11:46

Post #: 39017152
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Originally posted by eternalgrowth ↑

Makes the takeover at about 10.8x earnings, which is around the multiple the business has averaged since listing. The takeover is being done without a control premium effectively, but we know that the CEO had a meaningful chunk of his net worth in the business and it's reasonable to assume he's struck the best deal available.

The business is partially a victim of its own very efficient operation in terms of the premium offered. Unlike many businesses taken private by private equity, there is very little fat to trim from the operation. It has been run in a fairly P/E like manner for years.

Adamantem are getting a good deal here, the business is set up for several years of earnings growth, so even if they can't add much in terms of efficiency, just getting Celemetrix back on the right track and the continued growth of the other suite of businesses should see them do very nicely - Eternalgrowth

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Earnings growth from what division?

LGD Price at posting: 37.5¢ Sentiment: None Disclosure: Not Held
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