GUD Holdings raising $89.5M for new acquisition

Company News

GUD Holdings Limited (ASX:GUD) has inked a deal to buy Brown & Watson International and unveiled plans to raise $89.5 million to partially fund the deal. 
The appliance manufacturer has entered into an agreement to buy the asset for $200 million, plus an earn-out capped at $20 million.  
Brown & Watson is described as an Australian and New Zealand supplier of automotive aftermarket lighting, electrical and battery products. 
GUD Holdings says the funds will be raised through a $74.5 million placement to institutional investors and $15 million share purchase plan. 
GUD Holdings reported a net profit of $17.61 million in the first half of the 2015 financial year.