Posts Tagged ‘Retail’

ASX Company News: Woolworths To Spin Off Property Assets

Monday, October 8th, 2012

Woolworths Limited (WOW) announced a proposal to create Shopping Centres Australasia Property Group, a newly established Real Estate Investment Trust owning a portfolio of quality Australian and New Zealand shopping centres. SCA Property Group will be created via an in-specie distribution to Woolworths shareholders (the Distribution) and related offer to investors. The financial impact is not expected to be material due to the relatively small size of SCA Property Group when compared to Woolworths’ total business. WOW will transfer its current ownership of 69 neighbourhood, sub-regional and freestanding shopping centres to SCA Group. These centres have been independently valued by Cushman & Wakefield, Colliers International New Zealand Limited and Savills Australia in the aggregate at $1,406 million. All but one of the properties have been developed or redeveloped by Woolworths and a Woolworths Group business is the anchor tenant for each property.

Woolworths’ CEO Grant O’Brien said the creation of SCA Property Group signaled further progress against Woolworths’ strategic priorities: “The creation of SCA Property Group is in line with our strategy to act on the Company’s portfolio to maximise shareholder value. “Woolworths has determined that creating SCA Property Group is the best option to reduce the quantum of property held on the Woolworths balance sheet, make better use of Woolworths’ capital, and release value to shareholders. We are focused on growing earnings from our core retail business. Reducing the capital invested in property will allow Woolworths to focus on other growth options,” Mr O’Brien said.

Woolworths Shareholders will receive one stapled unit in SCA Property Group (Stapled Units) for every five Woolworths Shares that they hold on 30 November 2012. In addition to the Distribution, SCA Property Group is undertaking a public offer of 337.3 million Stapled Units to raise between $425 million and $506 million (the Offer) which will be used to partially fund the acquisition of the portfolio.

www.woolworths.com.au

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ASX Company News: Woolworths To Sell Dick Smith

Friday, September 28th, 2012

Woolworths Limited (WOW) announced that it has signed a share sale agreement with Australian private equity firm Anchorage Capital Partners for the divestment of Dick Smith Electronics (Dick Smith).

CEO Grant O’Brien announced in January 2012 Woolworths’ intention to exit the Dick Smith business through a restructure and divestment process.  The sale of Dick Smith follows a detailed strategic review and restructure of the business which determined that the business was non‐core in the size and context of the broader Woolworths retail platform and focus on maximising shareholder value.

Under the sale agreement, Anchorage will purchase 100 per cent of the business including 325 stores employing more than 4,500 people. Initial cash proceeds will be $20 million to be received in FY13 with Woolworths potentially benefiting from any upside resulting from a future sale of Dick Smith by Anchorage.  Woolworths will now work closely with Anchorage and the Dick Smith team to commence a smooth transition to new ownership and separation from Woolworths.

www.woolworths.com.au

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ASX Company News: David Jones Receives Takeover Offer From UK

Monday, July 2nd, 2012

The Chairman of David Jones Limited (DJS) Mr Robert Savage  advised that the Company had received an unsolicited letter from a non-incorporated UK entity, about which no usual public information is available, indicating its interest in making an offer for the Company. The Directors do not believe they currently have relevant information to enable them to qualify or value the approach but, should this change, will advise the market accordingly. In the meantime the Directors recommend that shareholders treat any related market comment cautiously.

Further to our announcement to the Australian Securities Exchange earlier  we note that a UK blog site has released the name of EB Private Equity (EBPE) as the party that has made an approach to David Jones Limited to acquire the Company.

EBPE’s proposal is said by EBPE to be A$1,650 million for a 100 percent acquisition of David Jones and is described in the letter received by the Company as being based upon “…$850m of equity provided by the EBPE led consortium, $450m of lending provided by a syndicate of banks and investment institutions and $450m in residual equity for the existing David Jones Limited shareholders, a portion of this residual equity shall be underwritten”.

No details of EBPE’s financial capacity, its management, or any of the terms of the residual equity have been made available. No further details in relation to the proposal have been provided.

www.davidjones.com.au

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ASX Company News: Metcash Acquires Automotive Brands Group

Friday, June 29th, 2012

Metcash Limited (MTT) announced that it has entered into an agreement to acquire 75.1% of the Automotive Brands Group for $53.8 million. ABG is Australia’s largest privately owned distributor and franchise operator in the automotive parts aftermarket sector, distributing product to a network of 241 stores. ABG owns and manages the Autobarn franchise (102 mainly retail stores), Autopro dealership groups (118 mainly trade based stores) and its Car Parts division services a further 21 independent operators. ABG is the third largest player in Australia servicing the automotive parts and aftermarket sector.

Andrew Reitzer, Metcash CEO, said this was an exciting opportunity for Metcash as the automotive parts and aftermarket sector provided good growth potential both in terms of growing their existing network and servicing the established 2,500 independent operators and service stations. “We are very pleased that the Automotive Brands Group will join Metcash,” Mr Reitzer said. “The Automotive Brands Group is a strong business and is a very good fit for us operating a highly effective customer focused business that fits well with our successful model of servicing our grocery, hardware and liquor retailers. “The opportunity exists for Metcash to provide merchandising and marketing skills, supply chain expertise and infrastructure to grow the business and realise significant synergies. The automotive parts and aftermarket retail sector has proven to be resilient to economic downturns as consumers tend to retain cars, increasing maintenance and demand for car parts,” Mr Reitzer said.

Metcash will add significant value to our business and provide our franchisees and suppliers with the level of support they need in order for us to remain at the forefront of the automotive and aftermarket segment,” Mr Dumbrell said. Mr Dumbrell, who will retain the remaining ownership interest in ABG, will continue as the CEO of ABG and will join the Metcash Executive team. The transaction is expected to close in early July. Upon obtaining its initial 75.1% ownership of ABG, Metcash will have typical majority shareholder rights including the right to appoint the majority of directors.

www.metcash.com.au

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ASX Company News: Retail Food Group Acquires Pizza Capers

Wednesday, February 29th, 2012

Leading Australian retail food brand manager and franchisor, Retail Food Group Limited (RFG) announced that it had entered into a conditional Share Sale & Purchase Agreement, subject to the usual and customary terms, to acquire the Pizza Capers Gourmet Kitchen franchise system. The Pizza Capers system specialises in the sale of gourmet pizza and related products made using fresh restaurant quality and wholesome ingredients. Established by founders Anthony Russo and Scott Geiszler in the Brisbane suburb of Kenmore in 1996, the Pizza Capers system achieved a population of 12 outlets before embarking on a franchising program in 2005. A further twenty (20) Pizza Capers outlets are programmed for commissioning during the balance of CY12.

RFG CEO Tony Alford said, “the transaction represents the culmination of an 18 month engagement during which each party has become well acquainted with the others’ business and operational philosophy”. “During this period it has become clear to RFG that Pizza Capers has distinguished itself within a highly competitive QSR segment and represents a brand that will both complement and enhance those franchise systems already under RFG stewardship”. “Pleasingly, the Vendors have also come to appreciate that RFG has the expertise to foster sustainable network growth outside of Pizza Capers’ traditional Queensland base whilst also providing the infrastructure necessary to service and support franchisees during challenging economic times”, Mr Alford said.

Retail Food Group is a leading Australian retail food brand manager, franchisor and wholesale coffee roaster. It is the franchisor and intellectual property owner of the Donut King, Michel’s Patisserie, Brumby’s Bakeries, bb’s café and Esquires Coffee Houses franchise systems comprising 1,148 outlets as at 30 June 2011.

www.rfg.com.au/rfg/

http://www.traderdealer.com.au/fundamentals/rfg

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ASX Company News: Automotive Holdings Group Acquires Jeff Wignall Group

Wednesday, February 1st, 2012

Automotive Holdings Group Limited (AHE) announced it had acquired the business and assets of the Jeff Wignall Group (JWG) in Victoria, excluding the business of Southern Mitsubishi. The dealerships to be acquired from JWG comprise 9 dealership points – Ford (4), Mitsubishi (1), Kia (4) – at 5 locations throughout the Mornington Peninsula in Victoria which turnover approximately $100million p.a. The purchase price is approximately $14million inclusive of goodwill and trading assets but excluding vehicle inventories, which will be funded by AHG’s floor plan facilities. The purchase price is being funded from the proceeds of the capital raising completed in 2011.

AHG Managing Director Bronte Howson said the purchase of JWG’s dealerships was a significant addition to AHG’s automotive operations in Victoria. “AHG has an underweight presence in Victoria and we plan to continue to build our business in Melbourne where we can add value. We acquired Ferntree Gully Toyota in 2010 and the purchase of JWG gives us further scale with some leading brands in Ford, Mitsubishi and Kia. This builds on and strengthens our existing relationships with these key manufacturers” said Mr Howson. The principal of JWG, Andrew Cross, said the sale to AHG would provide a platform to continue to grow JWG’s dealership franchises as part of AHG. “The sale to Australia’s largest automotive group is a great opportunity for JWG’s dealerships.

Automotive Holdings Group Limited (AHE) is a diversified automotive retailing and logistics group with operations in every Australian mainland state and in New Zealand. The Company is Australia’s largest automotive retailer, with its major operations in Western Australia, New South Wales and Queensland. AHG also operates the Prestige Hino truck dealership in Dandenong, Victoria – one of the largest in the country, and a leading Toyota dealership in Melbourne. AHG operates logistics businesses throughout Australia through subsidiaries Rand Transport and Harris Refrigerated Transport (transport and cold storage), AMCAP and Coventry’s WA (motor parts and industrial supplies distribution), VSE, providing vehicle storage and engineering, Genuine Truck Bodies, which provides body building services to the truck industry, and KTM Sportmotorcycles (motorcycle importation and distribution in Australia and New Zealand).

www.ahg.com.au

http://www.traderdealer.com.au/fundamentals/ahe

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ASX Company News: Super Retail Group Acquires Rebel Group

Tuesday, October 18th, 2011

Super Retail Group Limited (SUL) has agreed to acquire Rebel Group Limited from Archer Capital for total consideration of $610 million. Rebel is the clear market leader in the Australian sporting goods retail sector with 128 stores nationwide and an estimated 24% market share in a highly fragmented sporting goods retailing market. The strong fit between Super Retail’s and Rebel’s operating models presents the opportunity to apply Super Retail’s retail capabilities to grow the Rebel business The acquisition will be partly funded through a fully underwritten 9 for 19 pro-rata accelerated renounceable entitlement offer at $5.34 per share to raise approximately $334 million of new equity.  The acquisition is expected to deliver mid single digit EPS accretion in FY12 (pre- synergies)

Super Retail today announced that it has reached agreement with Archer Capital to acquire 3 Rebel for a total consideration of $610 million. The acquisition is consistent with the Group’s stated strategy of expanding into adjacent leisure retail businesses. The acquisition will be partly funded through a fully underwritten 9 for 19 pro rata renounceable entitlement offer of new Super Retail ordinary shares at an offer price of $5.34 per New Share to raise approximately $334 million. The retail component of the Entitlement Offer will contain an entitlements trading element where eligible retail shareholders will be able to trade their entitlements under the Entitlement Offer on the ASX. Rebel is Australia’s number one sporting goods and apparel retailer with a market leading brand. The acquisition comprises 90 Rebel Sport stores, 36 Amart stores and 2 Performance Sports stores and accelerates the Group’s strategic objective of establishing itself as the leading retailer of automotive and leisure products in the Australian market. The purchase price is before acquisition costs and is subject to a post completion adjustment based on Rebel’s working capital balance as at 29 October 2011.

Mr Peter Birtles, Chief Executive Officer of the Group, said, “The acquisition represents a fantastic opportunity for the Group to leverage its retail and supply expertise in a highly complementary business and to build Rebel’s position as the national leader in sporting goods retailing.” There is a natural strategic fit between the Super Retail and Rebel businesses. Rebel will strengthen the Group’s existing leisure and apparel retail offering, while the Group can provide the required expertise to accelerate Rebel’s growth and store roll-out profile and to optimise Rebel’s existing operations.

Rebel is Australia’s largest sports retailer with 128 stores across Australia under the Rebel (90 stores), Amart (36 stores) and Performance Sport (2 stores) banners. Rebel was created through the combination of three iconic Australian sports stores chains, Amart All Sports (acquired in 2004), Rowe & Jarman (acquired in 2005) and Rebel Sport (acquired in 2007).

www.superretailgroup.com.au

http://www.traderdealer.com.au/fundamentals/sul

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ASX Company News: Transol Enters Japanese Distribution Agreement

Monday, September 5th, 2011

The Directors of Transol Corporation Limited (TNC) are pleased to announce that its 100% owned subsidiary Valleyarm Digital Pty Ltd has entered into an agreement with BounDEE, Japan. The Agreement will allow Valleyarm to distribute its catalogue of 1.8 million songs to over 200 music retailers and mobile partners in Japan, including Reco choku, Oricon, Dwango and Labelgate. The partnership strengthens Valleyarm’s presence in the Japanese digital music market, with the Valleyarm catalogue already available with several Japanese digital retailers including iTunes Japan and Amazon Japan. Japan is a key territory for Valleyarm, and as identified by the International Federation of the Phonographic Industry as the second largest music market in the world, with estimated global digital music revenues to exceed US$13.5 billion by 2014, making Valleyarm’s growth into leading digital markets including Japan key to increased revenues and overall growth.

Valleyarm’s Managing Director Gary Mackenzie said “BounDEE’s knowledge of the mobile music market in Japan and its strong partnerships in the mobile arena will be a powerful asset to Valleyarm’s artists and labels. With mobile companies dominating the digital music business in

Japan, this is a critical partnership.” Tomohiko Fukuoka, President and CEO for BounDEE, Inc. said, “BounDEE is very excited with our partnership with Valleyarm, music fans in Japan are passionate about music discovery and are hungry for increased exposure to independent artists”

Valleyarm specialises in the digital distribution, publishing and online marketing of music and video content focused primarily on content and services within the Asia Pacific Region, along with representation in eastern and southern Africa, the Pacific and Europe. Valleyarm incorporates a unique solution emphasising an “Asia-In” “Asia-Out” model providing digital music content distribution and sub-publishing services which enable Asian content owners to monetise content external from their homeland, and to provide an Asian gateway for western acts and labels to monetise their content in non-traditional markets.

www.valleyarm.com.

www.transolcorp.com.au

http://www.traderdealer.com.au/fundamentals/tnc

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ASX Company News: Retail Food Group Acquires NZ Evolution Coffee Roasters

Friday, July 29th, 2011

Leading Australian retail food brand manager and franchisor, Retail Food Group Limited (RFG), announced that it has entered into a Sale & Purchase Agreement (SPA) to acquire the business and intellectual property assets of the New Zealand domiciled EvolutionCoffee Roasters Group comprising: Evolution Coffee Roasters; Roasted Addiqtion Coffee Dealers; Evil Child Beverage Co.

RFG CEO Tony Alford said, “The transaction delivers upon strategic growth initiatives previously advised to the market by adding value accretive businesses well able to provide additional revenues, synergies, scale and intellectual property expansion to the Company’s retail food franchise system portfolio”. “Without limitation, it will provide RFG with its own manufacturing facility and coffee roasting capability in New Zealand thus complimenting the Company’s recent acquisition of the Esquires Coffee House assets and intellectual property for New Zealand and Australia”, Mr. Alford said.

The businesses, which have been established for over 10 years, provide to RFG: an established wholesale and retail customer base, New Zealand based merchandising and production skill set, complimented by the ongoing engagement of the founders, security of quality coffee supply for our New Zealand franchise networks, dedicated New Zealand based training, research and development facility, and the opportunity to further leverage the Company’s intellectual property resources for the benefit of all stakeholders including franchisees.

Retail Food Group is a leading Australian retail food brand manager and franchisor. It is the franchisor and intellectual property owner of the Donut King, Michel’s Patisserie, Brumby’s Bakeries, Esquires Coffee Houses and bb’s café franchise systems.

www.rfg.com.au

http://www.traderdealer.com.au/fundamentals/rfg

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ASX Company News: Patties Foods To Supply Brumby’s Bread Shops

Wednesday, June 29th, 2011

Patties Foods (PFL) announces that it has signed a Heads of Agreement with listed retail food franchisor and owner of the Brumby’s Bakeries franchise system, Retail Food Group (RFG), that will facilitate PFL’s supply of savoury pastry products to Brumby’s Bakeries outlets throughout Australia. Supply to Brumby’s national franchise network of over 300 outlets from Patties Foods’ state-of-the-art baking facility in Bairnsdale, Victoria, is expected to commence before the end of December 2011. Patties Foods has supplied savoury pastry products to another of RFG’s successful franchise systems, the 328 outlet Michel’s Patisserie network, since 2007.

MD of Patties Foods Limited, Greg Bourke, said the supply agreement with RFG is in line with PFL’s strategy to grow its share of the Out of Home market, capitalizing on the investment in production capacity at Bairnsdale over recent years.

“PFL has enjoyed an excellent trading relationship with RFG through its Michel’s Patisserie franchise and we are looking forward to working with it on further supply opportunities in both savoury and sweet products into the future”. “This expansion of our contract manufacturing business complements the growing success of our whole range of frozen branded products, including Four’N Twenty, Herbert Adams, Nanna’s and Creative Gourmet,” Mr. Bourke said. RFG CEO Tony Alford said, “the agreement by which Patties Foods will manufacture and deliver RFG proprietary savoury products into the Brumby’s network represents a positive endorsement for Patties whilst satisfying our over-arching requirement for alignment of our franchise systems with robust suppliers capable of providing tailored solutions on a national basis”.

Patties Foods Limited (PFL) listed in November 2006 and is the leading Australian-owned branded frozen food company, with market leadership in the frozen savoury, dessert and fruit segments.

www.patties.com.au

http://www.traderdealer.com.au/fundamentals/pfl

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