ASX RELEASE – Wednesday 25th May 2005
JUMBO COMPLETES TMS ACQUISITION
Jumbo Corporation Limited (JUM) today announced completion of the acquistion of TMS Global Services Pty Ltd (TMS), a Melbourne-based wholesaler and online retailer of lottery products.
Following the completion, the merged entity has in excess of $4.0 million in working capital, bank debt of $2.5 million and has a combined unaudited NPAT of $1.28 million and EBITDA of $1.57 million for the 9 months ended March 2005. The total transactional value for the group will be in excess of $50 million per annum (annualized).
“Results for both JUM and TMS for the first 9 months of the current financial year are significantly ahead of the previous corresponding period,” Jumbo Corporation’s
CEO, Mr Mike Veverka, said today.
“The TMS acquisition potentially opens further opportunities for JUM on a global scale and enhances JUM’s reputation as one of Australia’s fastest growing online e-commerce and retailing companies,” Mr Veverka said.
“With the acquisition completed, we are now able to focus on cross-promoting TMS and Jumbo and extracting the synergies between the two entities”, he said.
Details of JUM’s TMS transaction are outlined in the Notice of Meeting and Explanatory Memorandum announced to the market on 18th April 2005. A partial voluntary escrow agreement has been reached between the parties for 55.7 million shares issued as part consideration.
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