The Shaver Shop Group (ASX:SSG) buys six remaining franchise stores

Company News

by Rachael Jones

The Shaver Shop Group (ASX:SSG) has entered a definitive agreement to acquire the six remaining franchise stores in NSW for $13 million plus stock on hand.

The transaction is expected to complete on 1 February 2021.

Shaver Shop had approximately $20.6 million net cash (no debt) at 30 November 20 and expects to fund the transaction using available cash and debt facilities.

They expect the acquisition will be immediately accretive to earnings per share with approximately $1.5 million to $1.6 million being added to net profit after tax in the first full year of ownership.

Shaver Shop estimates the acquisition of these stores will add $16 million to $17 million in sales in the first full year of ownership.

Shares in the Shaver Shop Group (ASX:SSG) are trading 3.8 per cent higher at $1.10.