Oct 26 (Reuters) - Tox Free Solutions Ltd (TOX)
- Strategic acquisition of Daniels Health Australia
- Deal for an enterprise value of $186 million
- Acquisition is expected to deliver approximately 16% eps accretion in FY2017 on a full year pro forma basis
- Toxfree intends to fund acquisition through a combination of equity, cash and increased debt facilities
- Entitlement offer will be structured as a 1 for 3.9 pro-rata non-renounceable entitlement offer priced at $2.30 per share
- Toxfree will acquire 100% of shares & related assets of daniels health pty ltd & daniels manufacturing pty ltd
- "Existing operational staff of daniel's will become employees of toxfree group"
- Acquisition will be partly funded by approximately $114 million of new equity funding
- All toxfree directors and senior executive management who hold shares in co have stated they intend to participate in entitlement offer
- Toxfree expects underlying fy2017 ebitda to be in lower half of its previous guidance range of 5-10% higher than fy2016 underlying ebitda
- Amended and increased its existing debt facilities from its relationship banks to provide funding capacity for acquisition
- As at end of 1q FY2017, toxfree is trading in-line with toxfree and market expectations
- Expects to have approximately $159 million of net debt upon completion
- Increased debt facilities will provide additional funding capacity of up to $95 million to support acquisition
- Announced that it has recently been "successful in award of a number of new contracts and opportunities"
