The West

Metcash seeks  $90m bolt-ons
Metcash seeks $90m bolt-ons

Grocery wholesaler Metcash says it is negotiating the acquisition of three or four small businesses, or "bolt-ons", for about $90 million in total.

Metcash chief executive Andrew Reitzer said the negotiations were well advanced but incomplete.

"If it's not complete, I can't specify them to the market and our shareholders," Mr Reitzer told the ABC's Inside Business program on Sunday.

"But if you add them all up, they come to $90 million.

"They are Australian opportunities in wholesale that bolt on to other (Metcash) businesses, so they are opportunities in food, opportunities in liquor, and opportunities in Mitre 10 (hardware). And they are just more of the same."

Metcash last week raised $325 million via a share placement to raise capital to fund acquisitions and growth opportunities.

Aside from the bolt-ons, the company's planned acquisitions include Automotive Brands Group (ABG), which includes the Autobarn and Autopro stores, for $53.8 million.

Metcash also intends to move to 100 per cent control of the Mitre 10 hardware business by buying the 50 per cent that it doesn't already own from existing franchisees, at an expected cost of $80 million.

Last week, Metcash said its full year profit had tumbled by 63 per cent as a result of the cost of its major restructure, its acquisition of the Franklins supermarkets, and tough trading conditions.

Full year net profit was $90 million, down from $241.4 million in the previous year.

The West Australian

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