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BRIEF-Surfstitch Group announces acquisition of Surf Hardware International

Published 25/11/2015, 09:46 am
© Reuters.  BRIEF-Surfstitch Group announces acquisition of Surf Hardware International
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Nov 25 (Reuters) - Surfstitch Group Ltd SRF.AX :

* Surfstitch Group announces the acquisition of Surf Hardware International and institutional placement

* Says total consideration for the acquisition will be paid 100% in cash

* Deal for an enterprise value of A$23.7 million

* Says reaffirms FY16E guidance of A$15-18 million EBITDA for the business

* "Compelling acquisition multiple of 7.5x fy16e EBITDA with 10%+ earnings accretion in FY16E on a full year pro forma basis"

* Says announced a fully-underwritten institutional placement to raise approximately A$50 million

* Says proceeds from the placement will be used to fund the repayment of certain debts of SHI

* Provides FY16E guidance of A$18-22 million EBITDA, including the contribution of SHI on a full year pro forma basis

* Source text for Eikon ID:nASX8W4rRk

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