- Pental (PTL) is acquiring Hampers with Bite (HWB), for $28.3 million which is being funded through a mix of cash, shares and ann equity raise
- HWB is a Melbourne-based online hamper and gifting specialist that will add financial value and new customer offerings
- Pental has already received commitments for a $6 million placement and will issue 15.8 million shares at 38 cents to institutional and sophisticated investors
- A further $2 million will be raised through a share purchase plan, allowing eligible shareholders to subscribe for up to $30,000 worth of shares
- PTL’s shares are up 1.16 per cent to trade at 43.5 cents
Household cleaning products company Pental (PTL) has agreed to buy eCommerce business, Hampers with Bite (HWB), for $28.3 million.
HWB is a Melbourne-based online hamper and gifting specialist. Its range of affordable hampers are sold as gifts to friends and family.
The acquisition is also set to be immediately earnings per share (EPS)-accretive as HWB’s FY21 revenue totalled around $24 million. It also reported an earnings before interest, tax, depreciation and amortisation of around $5.1 million.
Pental Managing Director Charlie McLeish was pleased to welcome HWB to the group.
“Our acquisition of HWB will transform Pental by boosting our financial scale and delivering new capabilities which are highly complementary to our existing business.”
Co-Founding Director of Hampers with Bite, Rory Boyle, was also pleased with the deal.
“Joining the Pental group is in line with our strategy to grow our addressable market, deepen our customer relationships and expand our product offerings with a strong platform for growth,” Mr Boyle said.
Of the $28.3 million consideration, a $3 million payment will be made through PTL shares at 45 cents each, subject to escrow restrictions for the earn out period. A further $4 million of the consideration will be funded from operating cash, subject to HWB achieving an EBIT of $6.3 million in FY22.
Placement and SPP
The majority $21.3 million is being funded through a combination of $9 million in cash, $5.7 million bank debt, a $6 million equity raise and a $2 million share purchase plan.
The $6 million equity raise is in the form of a placement which Pental has received firm commitments for from sophisticated and institutional investors.
Under the placement, 15.8 million shares will be issued at 38 cents each. The placement comprises two tranches, with the second subject to shareholder approval which will be sought at a meeting in mid-September.
The first tranche is expected to settle by the end of this month and the second tranche, if it’s approved, will be completed in October.
The share purchase plan (SPP) will allow eligible shareholders to subscribe for up to $30,000 worth of shares at 38 cents per share to raise an additional $2 million.
The SPP will be open from September 1 to September 15. The new shares will commence trading on the ASX on September 23.
PTL’s shares were up 1.16 per cent to trade at 43.5 cents at 3:38 pm AEST.