SYDNEY, AUSTRALIA: Metcash Limited, the largest wholesaler and distributor of food to independent businesses in Australia, has announced the acquisition of three businesses that will boost its growth and diversification.

The company will buy Superior Food, a leading foodservice distribution business, for up to $412.3m; Bianco Construction Supplies, a construction and industrial supplies business, for $82.2m; and Alpine Truss, one of the largest Frame & Truss operators in Australia, for $64m.

The acquisitions are expected to generate annualised synergies of about $19m and increase Metcash’s earnings per share and margins. The deal will be funded by a $300m placement, cash and debt facilities, and a $25m share purchase plan for eligible shareholders.

Metcash Group CEO, Doug Jones said: “We are delighted to announce three strategically aligned, synergistic and financially compelling acquisitions that accelerate our growth strategy.

“The acquisitions unlock substantial shareholder value and build on our track record of disciplined and accretive capital allocation. They also deliver further diversification and resilience to the Group and provide Metcash with an even stronger growth trajectory.

“The acquisitions provide a range of benefits for both Metcash and our network customers, which will allow us to continue Championing Successful Independents in support of thriving local communities, which is at the heart of everything we do.

“We are thrilled to be acquiring Superior Food, an industry leading player in the Australian foodservice market with a track record of above-market growth.

“Metcash is the logical owner of Superior Food, and the acquisition cements our position as the largest wholesaler and distributor of food to independent businesses in Australia.

“Superior Food provides a compelling opportunity to expand in an attractive and adjacent growth market through an industry leading player with an established national platform for future growth. The combination of the two businesses unlocks diversification benefits, procurement savings, range expansion and extends our purpose of Championing Successful Independents.

“Food distribution to independents is a business we know well. This, together with our proven integration track record, provides confidence in our ability to unlock value through the immediate scale that this acquisition provides in such a high-growth and fragmented space.”

Superior Food founder and CEO, Craig Phillips, said: “Superior Food has achieved significant growth, evolving into a national foodservice provider of scale with the loyal support of our staff, customers and suppliers. Metcash’s capabilities and focus on supporting independents uniquely places them to continue our growth. We are proud of our past and excited about the bright future with Metcash.”

On the hardware acquisitions, Mr Jones said: “The acquisition of the Bianco Construction Supplies and Alpine Truss businesses are both strategically and financially attractive and follow our successful track record of consolidation in the fragmented Hardware market.

“The addition of these two businesses support our Independent Hardware Group’s ‘Whole of House’ strategy and will enable us to further increase the proportion of materials we provide over the course of a house build, and extend our supply network across South Australia, the Northern Territory, Victoria and Southern New South Wales.”