- Shaver Shop (SSG) has entered a definitive agreement to acquire the six remaining franchise stores in NSW for $13 million
- The transaction is expected to be completed on February 1, 2021, and Shaver Shop will pay for the stores using available cash
- Furthermore, the company believes the acquisition will add up to $17 million in sales for the first full year of ownership
- Shaver Shop has also provided a business update for October and November
- With the easing of COVID-19 restrictions in Victoria, all stores in that state have re-opened with the exception of two with one set to re-open this month
- For the five months ending November 30, total sales were up 19.1 per cent to $88.4 million, and of this, 33.2 per cent came from online sales
- Shaver Shop has ended the day 3.77 per cent in the green with shares trading at $1.10
Shaver Shop (SSG) has entered a definitive agreement to acquire the six remaining franchise stores in NSW for $13 million.
The transaction is expected to be completed on February 1, 2021, and Shaver Shop will pay for the stores using available cash and, if needed, debt facilities.
Furthermore, Shaver Shop believes the acquisition will add between $16 million to $17 million in sales for the first full year of ownership.
“We are very excited to be acquiring the last six franchised stores and turning Shaver Shop into a fully owned corporate network,” CEO and Managing Director Cameron Fox commented.
“This completes our franchise buyback strategy, simplifies our business processes and reporting, and in doing so will lead to better outcomes for our customers,” he said.
“Given we are funding the acquisition with available cash, we expect the acquisition will be immediately accretive to earnings per share with approximately $1.5 million to $1.6 million being added to net profit after tax in the first full year of ownership,” he added.
Shaver Shop has also provided a business update for October and November.
With the easing of COVID-19 restrictions in Victoria, all stores in that state have re-opened with the exception of two – Melbourne Central and Spencer Street Outlet Centre.
The Melbourne Central store is scheduled to open early this month, however, no re-opening date has been announced for Spencer Street.
For the five months ending November 30, total sales were up 19.1 per cent to $88.4 million, and of this, 33.2 per cent were online sales.
“Our progress over the first five months has been very pleasing. This was capped off by a strong performance through our Black Friday and Cyber Monday promotional period,” Cameron said.
“Our absolute focus now is continuing this sales trajectory through the month of December to lock away another record first half financial performance for Shaver Shop,” he concluded.
Shaver Shop has ended the day 3.77 per cent in the green with shares trading at $1.10 in a $136.5 million market cap.