The securities of NRW Holdings Limited (the “Company) will be placed in trading halt session state at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday 16 August 2017 or when the announcement is released to the market.
NRW is acquiring the Golding Group Pty Ltd business for AUD85m funded by AUD48m in new debt, cash AUD7-12m and raising AUD25-30m new equity.
Key points:
- Golding FY17 revenue AUD369m, EBITDA AUD53m, order book ~AUD500m
- Diversifies NRW business (geographic and sectors)
- Step change in scale for NRW
- NRW unaudited FY17 revenue AUD370.3m, EBITDA AUD58.8m
- NRW maintains strong balance sheet with cash of AUD42.3m and net debt of AUD20.8m at 30 June 2017 (NRW Notes ~AUD63m, no other material debt)
- acquisition achieved on low multiple (1.6x EBITDA) and low gearing (additional debt to additional EBITDA of 0.9x);
- Acquisition adds AUD25m in plant and equipment to group balance sheet;
- Combined EBITDA AUD112m, total debt ~AUD110m (debt to EBITDA of 1x); and
- Strong cash flow generation across the combined group to service debt including principal amortisation and consequently debt reduction