Kresta buys Qld firm for $10m
Kresta has expanded its East Coast footprint with the acquisition of a Queensland blinds business for $10 million.
Executive chairman Xianfeng Lu said the company had entered into a conditional agreement to acquire Franklyn Blinds.
The company manufactures and sells blinds, shutters, awnings and security screens in the Brisbane and South East Queensland area.
Kresta said the business, which was started by Frank Galea in Brisbane in 1987, should contribute to a 30 per cent increase in the turnover of the group.
The acquisition is expected to be earnings per share accretive to Kresta from the date of settlement.
The company employs 134 staff and Mr Galea has agreed to continue to stay on as an executive in the business following settlement of the sale.
Kresta said the Franklyn brand would continue and provide the company with a stronger footprint and greater market share in Queensland to complement the Kresta, Vista and Curtain Wonderland brands.
"The scale of the merged businesses is expected to provide opportunities for buying synergies and an East Coast production capability as well as diversification of revenue into the securities screens market," Kresta said in a statement.
Separate from the $10 million sale price, Kresta will also pay for the value of stock held by Franklyn Blinds at the time of settlement.
Kresta shares were up two cents, or 10 per cent, to 22 cents at 10.10am.
