News & Media

Highlights

• FY21 revenue $1.4 million, EBITDA $0.3 million.
• Purchase price $0.46 million, primarily inventory.
• Synergies expected to deliver +25% EBITDA growth in the next 12 months.
• 30 years with profitable trading history. Strong reputation in the Albany Western Australia region.
• United Tools bannered store. Stealth will take possession of leased premises with 1,200 square meters of floorspace.
• UTA customer database of over 2,500.
• Strategic and highly synergistic transaction. To merge with Stealth brand Skipper Transport Parts Albany operations (STPA).
• UTA and STPA combination delivers a powerful service offering, larger range and new competitive advantage within a one-stop super store for industrial, tooling, safety, truck and automotive products, parts and accessories.
• Pilot store concept to evolve big-box format across other regions throughout Australia.

Transaction Summary

• Completion expected on 2 May 2022.
• Purchase Price $0.46 million.
  • $0.39 million payable on completion 2 May 2022.
  • $0.07 million balance payable by 30 April 2023.
  • Assets to be transferred to Stealth on completion include ~$0.30 million of stock inventory.
• Vendors will remain in the business for 1 year and receive 20% of the Net Profit Before Tax achieved over and above the baseline threshold of $0.20 million.

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.