News & Media

C&L is very complementary to the existing Stealth business with similar customer base, suppliers and services that provide the basis in ease of integration, synergies, and expansion. It has solid long-term stakeholder relationships and high-quality products, services, and solutions. These include product sales, fulfillment, distribution, and a service dept to large multi-national corporations, large domestic companies, small-to-medium business enterprises, schools and universities, and government agencies.

Identified opportunities in revenue growth synergies for the combined businesses include cross selling, Online eCommerce, a broader range of customers, growing the physical store network, expanding product range, new distribution channels, geographic expansion and the introduction of new services and solutions from the new combined capabilities of the Group. Identified annual cost synergies are approximately $0.5m for the combined business.

Stealth Managing Director Mike Arnold said:

“The acquisition of C&L continues Stealth’s disciplined growth plan since listing on the ASX, where we have strategically expanded our product offering, our distribution capability and network, and have moved into new geographic markets. We have strict criteria on price and on delivering long term value to our shareholders and customers, and we believe C&L meets these requirements.

“C&L is a highly regarded market leading business in Brisbane though serves customers Australia wide. The depth of C&L’s wide-ranging products and tailored services will give the merged businesses greater scale as we continue to build a national distribution network to deliver more customer value, better customer experiences, more stores in our network, deeper assortment of merchandise and brand range, and a more complementary team of experienced sales, product and distribution professionals.”

“Stealth will continue to maintain its capital discipline and is well positioned to grow its business and capitalise on investment and growth opportunities over coming years. This is underpinned by our increasingly diverse customer base demanding wide-ranging everyday workplace items, resulting in a steady flow of recurring sales activity.”

Settlement is expected to be on or before 1 December 2020 where integration and growth-based synergy programs will commence. C&L’s directors and management will continue in the business under the change in ownership.