GUD buys Willeton's Monarch for $30 million

The family owners of Willeton company Monarch Pool Systems have reaped a $30 million reward by agreeing to sell the business to listed Melbourne company GUD Holdings.
GUD said it was acquiring the business on a debt-free basis for around $30 million.
Monarch was established in 1977 and was acquired by the current owners in 1989.
West Perth advisory firm Mergers & Acquisitions assisted in the sale, adding to a string of private business sales negotiated by M&A over the past year.

GUD's full announcement is pasted below:

GUD Holdings Limited announces it has executed agreements to acquire the Monarch Pool Systems business on a debt free basis, effective from 3rd July, 2006, for around $30 million. The acquisition will be funded from existing debt facilities and will have a modest impact on GUD's strong balance sheet. The final acquisition price will be dependent on Monarch's FY06 accounts. The Monarch acquisition meets all internal financial criteria. It will be earnings per share accretive in F07, before any potential operational synergies. Monarch will be incorporated into GUD's Water Products group of businesses, which includes Davey, Spa-Quip and Contamination Control. It will add around $30 million of sales to this segment of GUD's operations. "Monarch is highly complementary to GUD's Water Products Group. It is a dedicated business focussed on the swimming pool industry and has built a strong position in the local market supplying a broad range of products to pool builders and pool shops, centred on its own technology in salt water chlorinators. We believe that Monarch will benefit from GUD's expertise in manufacturing, product and technology development, supply chain management and marketing," GUD Managing Director Mr. Ian Campbell said. "Monarch has a very sound revenue and earnings track record and has the potential to grow further through range expansion and through capitalising on Davey's extensive local and international distribution networks," he said.