- dusk (DSK) terminates its deal to purchase supplier of candle making inputs, Eroma Group
- In December, the company announced it will purchase Eroma for an enterprise value of $28 million
- The deal has now been cancelled and Dusk said it will not be proceeding any further
- There are not many details on why except some conditions on the deal were not achieved
- On the market this morning, Dusk is down 2.26 per cent and is trading at $2.60 per share
Candle retailer dusk (DSK) has dropped out of its deal to purchase supplier of candle making inputs, Eroma Group.
In December, the company announced it will purchase Eroma for an enterprise value of $28 million.
The deal has now been terminated and Dusk said it will not be proceeding. There are not many details on why except some conditions on the deal were not achieved.
“The acquisition agreement was, consistent with market practice, subject to certain conditions precedent to completion. Satisfaction of all of the conditions has not been achieved,” the group told the market.
Last week, Dusk saw its half-yearly sales tumble 12 per cent after government COVID-19 mandates forced store closures across New South Wales, Victoria and ACT.
Sales were reported at $80 million after the company lost 24 per cent of trading days over the period.
However, online sales were 2.8 per cent higher to $7.7 million and contributed to 9.7 per cent of total sales.
Pro forma earnings before interest, taxes, depreciation, and amortisation fell 22.9 per cent to $21.33 million with net cash at the end of the period sitting at $33.3 million.
On the market this morning, Dusk was down 2.26 per cent and is trading at $2.60 per share at 11:35 am AEDT.