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Stealth Group Holdings Ltd (ASX:SGI) has seen its share price rise more than 15% after securing exclusive distribution rights for CAT Power Tools, Wesco Power Tools and Harden Tools in Australia and New Zealand.
The agreements – secured through global tool manufacturer Positec – provide Stealth with exclusive selling rights across all market channels for 5 years in the case of Wesco and Harden Hand Tools, alongside a 3-year term for CAT Power Tools.
This will be done through Stealth’s multiple retail channels, which include company owned stores, reseller stores in trade and retail – including network licensee member stores, B2B sales contact centres and field sales representatives, and online sales channels.
Managing director and CEO Mike Arnold said the agreement marked a ‘game-changing’ milestone for Stealth, particularly within the framework of its FY28 growth plan.
“Securing the exclusive distribution rights for these leading brands highlights our commitment to delivering high-quality products, greater value, and enhanced experiences to our customers, while strengthening our market position and accelerating our FY28 growth ambitions,” he said.
“Annual contract purchasing commitments are set to increase year-on-year as we penetrate markets and channels.
“By the FY28 period, commitments across the three contracts, extrapolated into wholesale-level sales guidance based on projected sell-through, are expected to exceed $30 million, with strong margin contributions above 40%, excluding additional margins from company-owned retail stores.”
The company’s revenue target – according to the FY28 plan – is $300 million.
At 16:40 AEDT, shares in Stealth were trading at 73 cents – a rise of 15.87% since the market opened.
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