Small-medium enterprise investor Greencap Ltd has acquired two businesses in a scrip and cash deal worth $19 million while it plans to raise over $7 million through a share placement.
Small-medium enterprise investor Greencap Ltd has acquired two businesses in a scrip and cash deal worth $19 million while it plans to raise over $7 million through a share placement.
The company has signed agreements to acquire Sydney-based building and construction consultancy Trevor R. Howse & Associates Pty Ltd for $10 million, and will pay $9m for Leeder Consulting Pty Ltd.
Leeder provides specialist environmental lab and data interpretation services.
The new deals follow the completion of another acquisition by Greencap of Adelaide consultancy AEC Environmental Pty Ltd for $3.8 million.
Perth-based Greencap expects to complete the new acquisitions late next month after a shareholders meeting.
Meanwhile the company will place 45 million at 16 cents each to raise $7.2 million with institutional investor shareholders and groups already showing interest.
Below is the full announcement:
Greencap Limited (ASX:GCG) today announced it has:
- Signed agreements to acquire:
o Trevor R. Howse & Associates Pty Ltd ("Howse") for $9.975 million satisfied by cash and shares in Greencap at 20 cents each.
o Leeder Consulting Pty Ltd ("Leeder") for approximately $9 million satisfied by cash and shares in Greencap at 20 cents each.
Completion of both acquisitions is expected to take place late next month immediately after the Shareholders Meeting to be held next month.
- Agreed a placement of 45,000,000 shares at $0.16 per share to raise $7.2 million.
The acquisitions, on an annualised basis, are anticipated to lift Greencap's Earnings per Share from 2.5 cents to approximately 2.8 cents per share.
Greencap Managing Director, Jeffrey Broun, stated that "we are very pleased to add to our group the expertise and reputation of these two outstanding businesses. The acquisitions are very complementary and further elevate our standing in the Risk Management arena."
"With the two businesses expecting to contribute a combined current year EBIT of $4.3 million, the Greencap group's annualised activity level should be approaching total revenue of $58 million and EBIT of $12 million."
Hayden Howse, Managing Director of Howse stated "we are delighted to be coming on board the Greencap group.The Greencap model of retaining the operational identity, culture and management teams of acquired businesses is critically important to our company and our growth aspirations and we were very impressed with Greencap's ethics, integrity and commitment to assisting us."
Dr John Leeder, Managing Director of Leeder Consulting stated "we are keen to grow the Leeder business and the enhanced awareness and door opening that the Greencap group can provide means we can grow our business faster as part of a national platform of specialist risk management delivery streams."
Mr Jeffrey Broun added that "the equity funding committed of $7.2 million for these transactions was readily forthcoming from current institutional investor shareholders and also a couple of new institutional groups who have previously expressed interest in being involved with our group. Raising such funds in a volatile market is testament to the Greencap performance and quality of acquisitions coming into the group."
