Stealth Global Holdings Ltd (ASX: SGI) (the Company or Stealth) is pleased to announce it has agreed to acquire the business assets of United Tools Albany, Western Australia, store operation (UTA) for $0.46 million in cash, expanding its Western Australian ‘company-owned’ footprint and strengthening its market position.
Operating as a bannered United Tools store, UTA is a business-to-business (b2b) and business-to-consumer (b2c) retailer, offering a large range of major quality industrial, tooling, safety, and hardware brands.
UTA is also a licensee member of the United Tools buying group, a separate entity that was acquired by Stealth in March 2022. The buying group business does not own or operate trade retail stores.
Mike Arnold, Stealth Group Managing Director and CEO commented: “The rationale behind acquiring United Tools Albany retail store is consistent with Stealth’s strategy and growth criteria”
“Specifically for the Albany region, we will combine the United Tools and Skipper Transport Parts Albany stores creating a one-stop ‘mega store’ for industrial, tooling, safety, truck and automotive products, parts and accessories. This will deliver competitive advantage and cross-selling opportunities through a larger range available to the combined customer list.”
“More strategically, it is a pilot store that will evolve across other regions throughout Western Australia and beyond, where from business combinations the benefits of synergy, scale, and a stronger one-stop distribution model supports acceleration of sales and profitable growth.”
The transaction is to be completed on 2 May 2022.