Takeover target Spotless Group Limited (ASX:SPT) has detailed its expected future earnings to its suitor, private equity fund Pacific Equity Partners, predicting double digit earnings growth within four years.
The cleaning, catering and maintenance services provider received a sweetened $711 million takeover bid from Pacific Equity Partners earlier this month.
Having rejected the initial bid, Spotless said it would address due diligence matters and has now released a management presentation in an effort to get Pacific Equity to raise its bid.
The company expects to generate earnings of between $140 million and $150 million per year within the next three to four years.
The forecast compares with expected earnings before interest and tax of between $90 million and $94 million this year and $90.1 million achieved last year.
In the 2011 financial year Spotless Group posted a net profit of $42.8 million.
