Retail update
WB Hunter sold
ATS Building Products partners with the Parramatta Eels and Terang & District Co-operative has released its annual report
Thu Jul 06 2023
Listed transport, logistics, and rural supply company, Lindsay Australia (Lindsay) has acquired rural merchandising business WB Hunter.
WB Hunter was established in 1947 in Shepparton, in north-central Victoria, about 180 kilometres north of Melbourne's CBD. According to Shepparton News, the business was developed by the late Bill Hunter who was a former mayor and community leader. He worked together with a transport company.
It began as a small operation offering a few bulk goods and has grown into a retail business that has eight locations including Echuca, Tatura, Euroa, Katandra, Yarrawonga, Corowa, Wangaratta as well as the Shepparton store.
Queensland-based Lindsay announced it purchased the business for $34.6 million. The acquisition will allow its subsidiary Lindsay Rural to take on a diversified sales mix of agricultural supplies and support services that has over 10,000 commercial and retail customers.
It means Lindsay can expand its rural footprint beyond its core market in Queensland into the more populous states of NSW and Victoria. Analysts believe the acquisition gives Lindsay's rural business the ability to scale within one of Australia's core horticulture, dairy and mixed farming regions. A little over one-quarter of revenue is currently attributable to Lindsay's rural services. Acting Lindsay chief executive Craig Baker told Shepparton News:
The acquisition expands Lindsay's presence in key growth markets of Victoria and NSW and provides a strong platform for pursuing further growth opportunities across these regions.
The purchase by Lindsay Australia also ends ownership of the business by the Hunter family. However chief executive Michael Moroney will continue in the role. Mr Moroney is a WB Hunter director family member.
Financing of the acquisition will comprise of an upfront cash component, a scrip component of $7.2 million and a deferred cash payment for the inventory assets of about $14.5 million. All cash components of the transaction will be funded through Lindsay's existing cash holdings.
Lindsay advised the Australian Stock Exchange it expects to achieve earnings for the 2023 financial year of between $85 million and $90 million. It also informed the ASX on 26 June that CEO, Michael Kim Lindsay resigned his position, effective June 30, 2023.
ATS Building Products
Rugby league club Parramatta Eels recently announced a multi-year partnership with ATS Building Products that is based in Western Sydney. It has six locations and a head office in Northmead. The partnership comes in a year when ATS Building Products will be celebrating its 20-year anniversary.
The Parramatta Eels said it is very proud to be an integral part of a thriving Western Sydney community, one that is diverse and entrepreneurial and rich in history and heritage. Parramatta Eels CEO, Jim Sarantinos said:
ATS Building Products are a well-known and respected organisation, and one that we are looking forward to building a long-term partnership with. We are thrilled to welcome a brand with such a strong passion and commitment to Western Sydney and all look forward to bringing the partnership vision to life.
The partnership will see ATS Building Products have a strong presence at Parramatta Eels home games at CommBank Stadium as well as across Parramatta Eels' digital channels. ATS Building Products founder and CEO, Haytham Moshi said:
We look forward to building a strong partnership on and off the field.
Terang & District Co-op
The co-op's annual report showed it has added 130 new members, bringing membership to 3371, the largest number in its history. It also reported a profit of $1,053,015. It is the second time in three years the co-op's profit has topped $1 million.
Chief executive Kevin Ford and chairman Geoff Barby said the profits allowed the co-op to reinvest. In The Moyne Gazette, they said:
This keeps the co-op and town vibrant and appealing. The successes of recent years allow the board to contemplate and plan essential capital projects that will enable continued growth for the future of the co-op.
In 2023-24 it will invest $450,000 in introducing new IT operating systems into all business divisions and a $250,000 solar power system.
Mr Ford also said the strong result was built on consistent sales performance from Mitre 10 businesses, while the IGA + Liquor Supermarket continued to perform well, delivering revenue of more than $15.5 million.
We are very proud of what we have been able to deliver to the community in the last few years. Not only do we have a great supermarket and a great trade and retail home improvement store, we have an engaging and exciting community co-operative.
Terang & District Co-op employs more than 120 staff and supports local contractors, suppliers and growers where possible. Its sponsorships and donations increased to $85,830, and more than $233,000 in members' rewards were distributed. Mr Barby said:
The support of members and customers enables us to support our community.
Mr Ford said total turnover was $28.4 million, down 2.1%. He said considering the closure of the dairy side of 360 Dairy Solutions, the team achieved an "outstanding result for members".
