Wesfarmers to continue acquisitive streak

Wesfarmers boss Rob Scott has told a forum in Sydney the conglomerate is open to more ‘bolt-on’ acquisitions following a string of expansion projects.

Mr Scott was speaking this morning at the Macquarie Australia conference, where he outlined the business's broad approach to M&A.

“While we are flexible and opportunistic in our approach, we typically favour investments that provide opportunities for us to deploy incremental capital over time such that the business would be materially more valuable in five to ten years’ time,” he said.

Examples included its Mt Holland lithium project, which is a joint venture between its chemicals arm WesCEF and SQM as well as its acquisition of API, the owner of Priceline Pharmacy.

“We’ve significantly increased our investment in the WesCEF businesses through the development of the Mt Holland lithium project and are also considering a number of expansion options,” Mr Scott said.

He said the API had been the foundational asset for the group’s health division and flagged plans for further growth in that area of the business.

"In Wesfarmers Health, we see potential for incremental bolt-on acquisitions to support growth," Mr Scott said. 

Those plans are evidenced by Wesfarmers' latest $169 million bid for Adelaide-based SILK Laser Clinics.

“If the indicative proposal is successful, SILK will complement the health division’s existing presence in the sector through its ownership and operation of Clear Skincare Clinics,” he said.

Wesfarmers shares were off 1.34 per cent to trade at $51.36.