Mitre 10 acquisition strengthens Metcash against Coles and Woolworths
Metcash, which supplies IGA supermarkets, has completed its acquisition of 100 per cent ownership of hardware chain, Mitre 10.
Following the plans announced last month, Metcash said it would raise up to $375 million by issuing new shares to bankroll growth opportunities. Metcash paid approximately $46.5 million to move from 50.1 per cent of ownership to 100 per cent ownership of Mitre 10.
CEO of Metcash, Mr Andrew Reitzer, said he was delighted to have acquired the balance of Mitre 10.
“Mitre 10 has proven to be a highly strategic and value adding business pillar for Metcash. The acquisition will provide an enhanced ability for Metcash to leverage its proven merchandising and brand management skills and world class logistics capability into the hardware sector,” Mr Reitzer said.
Wesfarmers, which owns Coles, consists of the huge Bunnings Warehouse group, and Woolworths owns Masters Home Improvements.
In other recent acquisitions, Metcash has acquired 75.1 per cent of the Automotive Brands Group for $53.8 million in July 2012. This followed the successful 2011 acquisition of Franklins supermarkets. In December 2011, Metcash won a case against the Australian Competition and Consumer Commission, which had opposed the Franklins acquisition.