Grocery wholesaler Metcash Limited has completed its takeover of Automotive Brands Group
July 5, 2012
Grocery wholesaler Metcash Limited has completed its takeover of Automotive Brands Group [ABG].
Declaration of the acquisition to the Australian Securities Exchange this morning, follows an announcement on June 28 that the wholesaler planned to use its supply chain expertise and infrastructure to grow
Automotive Brands Group.
The $58.3 million agreement means Metcash
will own 75.1 percent ABG.
Metcash hopes to use its supply chain expertise and infrastructure to grow ABG.
Metcash reported a full-year profit drop of 63 percent in June, ahead of
a planned $176.7 million company restructure, which included the Automotive Brands Group purchase.
The company announced it would issue new shares to raise $375 million to fund
such acquisitions.
These funds, according to
Metcash, would also go towards funding the upgrade of its warehouse distribution system.
Automotive Brands Group is Australia’s largest privately owned distributor and franchise operator in the automotive parts aftermarket sector, distributing to a network of 241 stores.