Wholesaler Metcash disclosed it has signed three acquisition agreements cumulatively valued at around $558.5 million.
Metcash agreed to pay up to $412.3 million to acquire Superior Food Group, a foodservice distribution business with 23 branches nationwide and a 80,000sqm warehouse space. The company boasts an estimated over 20,000 customers including quick service restaurants, corporate caterers, cafes, restaurants, and hotels.
“Superior Food provides a compelling opportunity to expand in an attractive and adjacent growth market through an industry-leading player with an established national platform for future growth,” said Metcash CEO Doug Jones.
“Metcash is the logical owner of Superior Food, and the acquisition cements our position as the largest wholesaler and distributor of food to independent businesses in Australia.”
Superior Food Group CEO and founder Craig Phillips will continue to lead the company after the acquisition.
Meanwhile, Metcash will acquire hardware stores Bianco Construction Supplies and Alpine Truss for $82.2 million and $64 million, respectively.
Bianco Construction Supplies is a provider of construction and industrial supplies in South Australia and Northern Territory, while Alpine Truss is among the largest frame and truss operations nationwide.
“The acquisition of the Bianco Construction Supplies and Alpine Truss businesses are both strategically and financially attractive and follow our successful track record of consolidation in the fragmented Hardware market,” said Jones.
“The addition of these two businesses support our Independent Hardware Group’s ‘Whole of House’ strategy and will enable us to further increase the proportion of materials we provide over the course of a house build, and extend our supply network across South Australia, the Northern Territory, Victoria and Southern New South Wales.”
Last November, Metcash announced it took full ownership of Total Tools with the acquisition of the remaining 15 per cent stake of the trade tool supplier for $101.5 million.
This article was first published on sibling website Inside Retail.