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Mitre 10 Australia to acquire Home Timber & Hardware Group for $125m

RBR Staff Writer Published 26 August 2016

Metcash's subsidiary Mitre 10 Australia has signed a binding agreement to acquire Home Timber & Hardware Group (HTH) from Hydrox Brands for A$165m ($125m).

The acquisition, which is expected to be completed in early October, will be funded via a combination of equity and debt comprising a fully underwritten institutional placement of A$80m ($60.8m) and A$85m ($64.6m) in debt to be drawn from existing facilities.

It will result in a combined hardware network of 1,800 stores. The purchase is in line with Metcash’s strategy to become a leading independent wholesaler.

The combined networks of Mitre 10 and HTH would help retailers from both groups to be more competitive due to the increased scale and extra efficiency opportunities.

HTH’s retail brands include Home Timber & Hardware, Hudson Building Supplies, Hardings and Thrifty-Link. The company recorded net sale revenue of approximately $970m in the financial year which ended in June 26, 2016.

Both retailers and shareholders are likely to benefit through the opportunity for synergies created from the expanded network as per Metcash.

Headquartered in Sydney, Metcash is a distributing and marketing company. It specializes in groceries, fresh produce, hardware, alcoholic beverages as well as other consumer goods.

The deal exempts Metcash from buying either two loss-making HTH stores or the Dandenong distribution center in Victoria.


Image: Mitre 10 Australia has signed a binding agreement to acquire Home Timber & Hardware Group. Photo: courtesy of stockimages at FreeDigitalPhotos.net.