Supplier update: Big River Industries
Epping Timber Joinery & Hardware and Prefab acquisition
The company expects the acquisition to be earnings-per-share-accretive from year one, and it will be funded from Big River's existing debt facilities
Fri Nov 18 2022
Manufacturer and distributor of timber and building products, Big River Industries (BRI) has entered an agreement to acquire the trading business and assets of Epping Timber Joinery & Hardware and its Prefab subsidiary.
The acquisition price is up to $6 million, which includes a cash component and additional earn-out payments over a two-year period if certain profit growth targets are achieved.
With locations in Epping and Beaufort, BRI said acquiring Epping Timber will enhance its presence in Victoria, and give it access to some of Melbourne's growing suburbs and regional Victoria, specifically Ballarat.
Founded in 1965, Epping Timber started out as family business in a humble garage and became known as a manufacturer of cabinetry and joinery items for the building industry. In the late 1990s, owners Antonio and Caterina Chincarini purchased a truss plant which expanded the market for Epping Timber into prefabricated building products. It also became a retailer of building materials.
With annual revenue exceeding $16 million, Epping Timber is also expected to complement BRI's existing Victorian sites at Geelong, Dandenong, Dandenong South and Campbellfield. The addition of Epping Timber's frame and truss capability will increase BRI's total manufacturing capacity.
Big River CEO Jim Bindon said the acquisition "ensures the longevity of the Chincarini family legacy built over their 57 years in business".
Big River looks forward to bringing our national product range, supplier relationships and capabilities to further enhance the customer offering, and we look forward to continuing the long-term partnership that customers, suppliers and the staff have enjoyed with Epping Timber.
The acquisition will improve BRI's overall suite of product offerings into the residential construction markets. It will place BRI in a strong position to satisfy the growing timber demand for housing.
At its full year presentation in August this year, Mr Bindon said acquisitions remain a major part of the company's strategy.
...[With] 23 [sites] in Australia and New Zealand compared to ... maybe 2,000 timberyard hardware shops, building materials outlets. So it's a very, very big market...Any excess funds we've got along with our additional bank facility is really earmarked for acquisitions as we continue to expand the network.
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