Stealth Group Holdings shares closed trade up 60 per cent to $1.11 on Monday, following news it was set to acquire Hardware & Building Traders Pty Ltd.
Stealth Group Holdings shares closed trade up 60 per cent to $1.11 on Monday, following news it was set to acquire Hardware & Building Traders Pty Ltd.
Mike Arnold-led Stealth said it had filed documents to acquire HBT – the country’s biggest privately-owned national buying group – for a cash consideration package of $22 million, with the deal expected to be completed today.
The Stirling-based company, which has a market cap of $90.3 million said the acquisition would give the company an opportunity to forge a path as a sold national alternative against the likes of Wesfarmers-owned Bunnings and Metcash-based Total Tools.
“This acquisition and merger of HBT marks a pivotal moment for Stealth and for Australia’s independent hardware and industrial sector,” Mr Arnold said.
“It is transformational in scale, strategic in timing, and value-creating for our shareholders, independent operators, our team, and suppliers who see the benefit of partnering with a large alternative group.
“Our objective is to make independent operators and our 100%-owned company operations more successful and highly competitive for customers, while providing a strong channel to market for suppliers who support the alternative-independent strategy and prefer not to be beholden to one or two major players.
“The integration of HBT materially expands our national footprint and strengthens our position as the market-leading alternative to the majors.
“Combined, we now operate across more than 1,200 hardware and industrial locations – a uniquely capital-light, lean, and flexible cost base with a scalable distribution model that few in the market can match.”
Stealth posted a $3.1 million net profit in FY25, up from $1.4 million in FY24, while its revenue rose from $113.7 million to $141.7 million.
As a result of the HBT acquisition, the company said it had updated a series of target metrics within its FY28 guidance strategy - including increasing its revenue from more than $300 million to in excess of $500 million, along with a net profit margin between 5 and 8 per cent.
