Auto parts and accessories retailer Super Cheap Auto Group Ltd
(ASX:SUL) has agreed to acquire outdoor leisure retailer Ray’s Outdoors for $54 million.
Super Cheap says it will fund the acquisition through a capital raising, comprising of a fully underwritten institutional placement and a non-underwritten share purchase plan.
The transaction is expected to be earnings per share accretive in fiscal 2011, growing to high single digit accretion in fiscal 2012.
Managing director Peter Birtles says Ray’s Outdoors will be merged with the BCF Boating, Camping and Fishing business to create a market leading Australian Outdoor Leisure Retailer with two distinct brands, operating 103 stores with combined annualised sales of around $400 million.
Mr Birtles says that over time, the company believes there is capacity to grow the network to 160 stores across Australia and New Zealand with around $600 million of sales.
The company says it will issue 15.9 million shares at a price of $4.80 a share to raise $76.32 million.
Super Cheap Auto’s fiscal 09 profit came to $32.14 million.
