SYDNEY: Stealth Group Holdings Ltd (ASX: SGI) said on Monday it will acquire Hardware & Building Traders Pty Ltd (HBT), Australia’s largest privately owned hardware buying group, for A$22 million in cash, in a move that positions the company as a leading alternative to industry giants Wesfarmers and Metcash.
The acquisition, funded through extended bank-debt facilities, adds approximately 1,165 independent stores and A$700 million in annual purchases to Stealth’s network, creating a national distribution platform spanning hardware, industrial, safety, automotive, and workplace sectors.
“This is transformational in scale and strategic in timing,” said CEO Mike Arnold. “It strengthens our position as the market-leading alternative to the majors.”
Stealth upgraded its FY28 guidance, forecasting sales above A$500 million, up from A$300 million, with EBITDA margins between 8% and 12%, and NPAT margins of 5% to 8%. The company expects A$8 million in annual profit synergies by FY27 and over A$200 million in incremental sales by FY28.
HBT will operate as Stealth’s dedicated wholesale division, servicing both company-owned and independent operators. The integration is expected to complete within 60 days.
The deal accelerates Stealth’s market leadership trajectory by nearly three years and reinforces its capital-light, scalable model amid a fragmented A$93 billion market.