As announced on 14 September 2022, IVE has completed the acquisition of substantially all of the printing and finishing assets of Ovato Limited (Ovato) for a net purchase consideration (including transaction costs) of $16m.
Integration and associated capital expenditure costs are estimated to be approximately $22m and are expected to be incurred progressively over an 18-month integration period.
While the transaction is expected to be EPS accretive in FY23, IVE is not yet able to provide guidance around the expected timing of emergence of the net synergies as the phasing of the integration plan is subject to refinement and finalisation over the coming months.
Following completion of the Ovato transaction, IVE today announces a fully underwritten institutional placement to raise approximately $18m and a non-underwritten share purchase plan to raise approximately $2 million (Capital Raising).
Importantly, the Capital Raising will:
-- Preserve significant balance sheet capacity for IVE to pursue previously announced growth initiatives including further organic initiatives (e.g. Lasoo e-Commerce market place);
-- Support further opportunistic ‘bolt-on’ and/or strategic acquisitions (e.g. in the adjacent packaging sector); and
-- Will also strengthen and deepen IVE’s institutional shareholder base, increasing liquidity in the market for IGL shares.
For more information, download the attached PDF.
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