get on it

FRR has 60% of the commercial refrigeration business Australia wide and is now consolidating the commercial A/C business........on top of that is 10% FF divvy at current SP.

FRIGRITE CONTINUES ITS PUSH INTO AIRCONDITIONING
Frigrite Limited, a leading Australian refrigeration systems group, today announced that it
has agreed to acquire the business of NAC Air Conditioning (“NAC”). This acquisition is
Frigrite’s second since listing on the Australian Stock Exchange in March 2005, and is
consistent with the company’s growth strategy of leveraging existing customer relationships
through the expansion of its service offer. NAC is expected to increase Frigrite’s net profit
after tax by approximately $0.4m on an annualised basis. The impact in the financial year
ending 30 June 2006 is expected to be an increase in earnings of $0.2m.
NAC was established more than 30 years ago and is a leading air conditioning business in
the Melbourne metropolitan area, with sales revenue in excess of $12m per annum. Its main
business is in commercial air conditioning maintenance and installation and its key
customers include Federation Square and United Group, together with various universities
and municipal councils. NAC currently service over 1,000 sites throughout Victoria.
The purchase consideration is $3.0m, subject to adjustment for final net asset valuation,
representing an EBIT multiple of approximately 4.0 times. NAC’s management team will
remain with the business and will receive 25% of their purchase consideration in the form of
Frigrite shares, which will be subject to an escrow period of two years. This will result in the
issue of 967,992 shares at an issue price of $0.7748. The debt component of the
consideration, being $2.25m, will be funded from existing debt facilities. It is anticipated that
the acquisition will take effect from 1 March 2006.
Mr John Carew, Frigrite’s Managing Director, said “NAC is the second step in Frigrite’s air
conditioning expansion strategy, as outlined at our annual general meeting on 23 November
2005. The acquisition of NAC provides significant impetus to our strategy of developing a
national refrigeration and air conditioning service footprint, and will be immediately EPS
positive ”.
Frigrite is a truly national company, employing 470 people, based in 12 locations across the
country. Its strategic focus is on providing a comprehensive range of cold chain and climate
control solutions to the food and beverage industry, together with the wider community.