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Stealth buys WA company Protect-A-Load for $528K

Finance
ASX:SGI      MCAP $19.68M
20 November 2019 13:19 (AEST)

Stealth Global has acquired a Western Australia business, Protect-A-Load for $528,000.

Protect-A-Load designs and supplies innovative load restraint products. Its products include 18 teeth ergonomic reverse action ratchet tie-downs and patented lockable cargo nets.

Stealth paid $258,000 for the business, plus an additional $270,000 for trading inventory at cost. Protect-A-Load has a contracted sales pipeline of $250,000 and has a matching future inventory at cost.

The WA business will be integrated into the Heatleys Safety and Industrial Division. Stealth said its products will complement and extend the existing Heatleys range.

Stealth is an Australian multinational distribution group providing workplace consumable products and supply chain solutions to businesses.

Stealth Managing Director Mike Arnold said the acquisition of Protect-A-Load is consistent with Stealth’s growth strategy.

The company has continued to invest in expanding its product range building a stronger and more competitive business since listing on the ASX in October 2018.

Stealth believes Protect-A-Group has growth potential when its combines with Heatleys range.

“The addition of this product range allows us to expand our offering of high quality, innovative products that add value to our customers, and improve operational health and safety,” Mike said.

The Protect-A-Load product range will initially be marketed through Heatleys and will be rapidly rolled out across Australia through the 27 member stores.

Stealth Global is up 43.75 per cent on the market today and is selling shares at 12¢ apiece at 3:03 pm AEDT.

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