re: (ready to run) it sure did yesterday
McPherson’s shares soar on dual acquisition 14/10/04 By: James Seabrook
Shares in local consumer products company McPherson’s Limited (MCP) jumped 10% today after announcing that the acquisition of Multix Pty Limited from an AMP Limited (AMP) subsidiary and Accantia Health & Beauty Pty Limited from ANZ Limited (ANZ). The group paid $70 million cash plus $10 million in shares for Multix, while Accantia was acquired for $16 million.
The group said that the acquisitions went ahead largely because both businesses sourced their products in a similar manner to McPherson’s and distribute through retailers with whom McPherson’s already has strong trading relationships.
Multix markets products in the household plastic bags, wraps and foil category in Australia, while Accantia markets personal care products including cotton products (balls, tips and pads) and facial and baby wipes.
McPherson’s managing director Mr David Allman claimed that both businesses have a sound financial track record and strong management teams.
“Their combined annual sales revenue is around $75 million per annum with earnings before interest, tax and goodwill amortisation budgeted at around $13 million per annum,” he said.
Both acquisitions are expected to be earnings per share positive this year, however McPherson’s debt to equity ratio is expected to initially exceed 100%.
The group expects the ratio to be reduced to around 100% by the end of this financial year.
At 1500 AEST, shares in McPherson’s were up nearly 10% or 49c to $5.41.
MCP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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