Metcash announced on Monday it would buy Superior Food for up to $412.3 million; South Australia-based Bianco Construction Supplies for $82.2 million; and Alpine Truss, one of the largest frame and truss operators in Australia, for $64 million.
Metcash Group chief executive Doug Jones said the acquisitions were strategically aligned, synergistic and financially compelling, with Metcash expecting them to create cost savings of $19 million annually.
"The acquisitions unlock substantial shareholder value and build on our track record of disciplined and accretive capital allocation," he said.
"They also deliver further diversification and resilience to the group and provide Metcash with an even stronger growth trajectory."
Metcash said it would launch a $300 million capital raising to help fund the acquisitions, with the remaining $278 million funded through cash reserves and existing debt facilities.
Currently owned by Quadrant Private Equity, Superior Food delivers ingredients, packing and cleaning items to 20,000 customers, including quick service restaurants, corporate caterers, cafes, restaurants and hotels. It has 23 branches across Australia, in every state except the NT.
Craig Phillips will remain its chief executive, reporting to Mr Jones.
The hardware acquisitions will bolster Metcash's offering in the sector. It supplies independently owned Mitre 10, Home Timber & Hardware and Total Tools stores, among others.
In addition to IGA, Metcash supplies the Foodland chain in SA as well as Bottle-O, IGA Liquor and Cellabrations bottle shops.
Metcash
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