08/01/2013 - 14:11

Joyce Corp combs through KWB Group

08/01/2013 - 14:11

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Bedshed owner Joyce Corporation will investigate further an opportunity to invest in a national retail company that specialises in kitchens and wardrobes.

Osborne Park-based Joyce today said to had signed a heads of agreement to carry out due diligence on the possible investment of private company KWB Group.

KWB trades under its retail brands Kitchen Connection and Wallspan Kitchens and Wardrobes.

The investment will be through secured convertible notes in a number of tranches, with Joyce planning to convert the notes into a minimum equity of 51 per cent, subject to key performance conditions within six months.

Joyce said the investment aims to have positive earnings from day one through the convertible note return, with KWB’s consolidated forecast sales for the 2013 financial year around $26 million.

Joyce added that KWB managing director John Bourke and finance director Chris Palin have agreed to manage and retain an equity share.

An update on the due diligence process is expected in the coming month.

Shares in Joyce were unchanged at 41c at 1348 AWST. 

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