Completion of Mammoth acquisition, appointment of new Managing Director and CEO and acquisition update
31 January 2014
- Greencross Limited (Greencross) (ASX:GXL) today completed its acquisition of Mammoth Pet Holdings Pty Limited (Mammoth), owner of Petbarn and Animates, creating Australasia's largest integrated consumer-facing pet care company.
- Jeff David has been appointed to the position of the Managing Director and Chief Executive Officer of Greencross.
- Since the announcement of the merger on 14 November 2013, 6 new Petbarn stores have been opened and Greencross has acquired 2 veterinary businesses.
Completion of Merger with Mammoth
Greencross today completed its merger with Mammoth, owner of Petbarn and Animates, by acquiring 100% of Mammoth's shares from the Mammoth shareholders in exchange for issuing them with a total of 52,574,753 new Greencross shares.
The merger has created Australasia's largest integrated consumer-facing pet care company, with a network of 130 stores and 102 vet clinics across Australia and New Zealand. This includes 6 new Petbarn stores which have been opened since the merger was announced at Myaree (WA), Gladstone (NSW), Casula (NSW), Bayswater (VIC), Ringwood (VIC) and Weston (ACT) and two recently acquired veterinary practices in Calwell (ACT) and Beaudesert (QLD).
Following completion of the merger, with effect from 6 February the board of Greencross and its senior executive team will change.
The new board will comprise:
- Stuart James (Non Executive Chairman)
- Jeff David (Managing Director and CEO)
- Glen Richards (Managing Director, Veterinary Services)
- Paul Wilson (Managing Director, Retail)
- Andrew Geddes (Non Executive Director)
- Matt Hobart (Non Executive Director)
- Scott Gilbertson (Non Executive Director)
Matt Hobart and Scott Gilbertson are Partners at TPG Growth, Greencross' largest shareholder.
Appointment of new Managing Director and CEO
As previously foreshadowed, Glen Richards, who will remain on the Greencross board, has stepped down as CEO and will be replaced by Jeff David.
The Chairman of Greencross, Mr Stuart James said "On behalf of my fellow directors, I would like to extend my thanks to Glen for his leadership of Greencross. His diligence and application have been a significant contributing factor to the success of the company and I look forward to continuing to work with Glen in his role as director and Head of Veterinary Services."
"We look forward to Jeff David leading the Greencross team as our company embarks on the next exciting phase of its development. Jeff's strategic vision, energy and passionate commitment to establishing Greencross as Australia's leading specialty pet care company make him an ideal candidate to manage the integration of the newly acquired Mammoth business and execute our growth plans."
Jeff David is a founder of Mammoth, has served as a Non-Executive Director of Greencross since 2007 and is a Non-Executive Director of the Skin Cancer Foundation Australia. Prior to cofounding Mammoth, he was the CEO of Davids Asia Pte Ltd (an Asian retail logistics business) and Chairman of ShopFast (an online grocer).
A summary of the material terms of the Employment Agreement for Mr David is attached in Appendix 1.
Acquisition of Two Veterinary Businesses
Greencross is pleased to announce that it has acquired two new veterinary businesses.
Total cash consideration, including deferred payments, to be paid for the combined acquisitions equals $3.7 million. The businesses are expected to deliver annualised revenue and EBIT of $3.9 million and $0.8 million respectively and are expected to be earnings per share accretive in FY2014.
The transactions are subject to deferred vendor payments for a period of up to 12 months.
The acquisitions are located in Calwell (ACT) and Beaudesert (QLD). The Calwell business has been in operation for 30 years and the Beaudesert business has been in operation for 35 years. The transactions were effective as at 28 January 2014.
Announcement of Interim Results
Greencross confirms that the company intends to announce its interim results for the six months ending 31 December 2013 on Monday 10 February.
Greencross was established in 2003 and has grown to become Australia's leading veterinary services company through the acquisition and integration of 102 practices around Australia. On 31 January 2014, Greencross acquired Mammoth, resulting in Greencross becoming Australasia's largest integrated consumer-facing pet care company.
Greencross' strategy is to continue to consolidate the fragmented veterinary services and pet accessories and pet food supply industries in Australia. Greencross is focused on delivering exceptional veterinary medicine, pet foods and products and levels of care to its customers and pets.
For further information please contact:
Jeff David, Director, Greencross Limited
Phone: (02) 8595 1751
Robert Wruck, Consultant, Investor Relations
Phone: (02) 8595 3313