Super Group on rise with rousing $610m deal for Rebel

$5.34 to raise roughly $334 million for the deal. The balance of the purchase price, $296 million, will be funded via debt. Super Retail shares closed on Friday at $6.50.

Archer Capital paid $370 million for sporting goods retailers Rebel and Amart All Sports in 2007.

From its 128 stores, Rebel generated revenue of $603 million in 2010-11 to produce earnings before interest, tax, depreciation and amortisation of $77 million.
Advertisement: Story continues below

Super Retail chief executive Peter Birtles aims to expand Rebel's national footprint to 185 stores over the medium term.

Despite the gloomy conditions for retailers, Super Retail has enjoyed a strong performance from its specialty stores, lifting profit by 46.1 per cent to $55.59 million in the latest full year, on sales that rose 16.4 per cent to $1.092 billion.

The acquisition is expected to generate mid-single-digit gains in earnings per share this financial year.

''Super Retail has proved to be able to both set up new business as well as integrate acquisitions,'' said Dean Fergie, institutional adviser at JM Financial Group. ''It looks OK on the face of it, but when you bite off such a big piece of the pie, as they have with this, the risk is you get indigestion. But these guys you would back among other mid-tier retailers.''

Read more: http://www.brisbanetimes.com.au

Getting there :
super group ,super groupie ,supergroup mick jagger ,super group names ,super grouper ,super group atlanta ,super group vh1 ,super groupie band ,super group singapore ,super group deviantart