PERTH: Waterco Limited has on 2 June 2020 entered into an agreement to purchase the business of Automated Pool Products Pty Ltd (APP).

The Company has entered into the agreement to purchase the business of APP as part of its strategy to increase its market share (especially in Western Australia and Queensland).

The purchase price payable to APP upon completion of the sale will be approximately $3.085m (including Inventory) subject to certain typical adjustments and achieving future earnings targets. The purchase of the business is to be funded by a combination of bank loans and working capital.

Under the terms of the agreement and subject to satisfactory due diligence on the business of APP and all required approvals, the sale completion is expected to take place by 30 June 2020.

APP is a leading distributor of hardware for the domestic pool market. Through a network of independent shpps and dealers, they provide a range of high quality products.

The purchase of APP is expected to add in excess of $300,000 to the Company’s EBITDA in FY21 and incremental earnings going forward.