June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

BRIEF-JB Hi Fi acquires The Good Guys for $870 million

Published 13/09/2016, 08:45 am
© Reuters.  BRIEF-JB Hi Fi acquires The Good Guys for $870 million
JBH
-

Sept 13 (Reuters) - JB Hi-Fi Ltd JBH.AX :

* Acquisition of the good guys - company announcement JBH.AX

* Acquisition of 100% of The Good Guys for total cash consideration of $870 million

* Deal expected to deliver net synergies of $15 - 20 million per annum to the combined business after a three year integration period

* FY 2016 pro forma EPS accretion of approximately 11.6%, pre-synergies and before transaction and implementation costs

* Acquisition will be funded through a combination of a fully underwritten, pro-rata, accelerated, renounceable entitlement offer

* Says deal expected to complete in late 2016 or early 2017

* Acquisition will be funded through a entitlement offer of approximately $394 million and $500 million from new and existing debt facilities

* August 2016 YTD consolidated total sales growth was +11.6%

* JB Hi Fi anticipates this will continue to drive sales growth in the first half of FY 2017

* JB Hi Fi reaffirms its FY 2017 JB Hi Fi sales guidance of sales of circa $4.25 billion

* Board expects to maintain the current dividend payout ratio of 65% of earnings

* "Transition is expected to result in the good guys FY 2017 sales and earnings being in line with FY 2016 results"

* Source text for Eikon ID:nASX4VWcsT

*

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.