Super Retail buys Macpac for $144m

WELLINGTON: ASXlisted Super Retail Group has bought outlook equipment chain Macpac Holdings for

$144 million, more than twice the $68.7 million paid by Australia’s Champ Private Equity in 2015.

The deal adds 54 stores across Australia and New Zealand to Queenslandbased Super Retail’s suite, and is expected to generate sales of $95 million and pro forma earnings before interest, tax, depreciation and amortisation of $16 million in the year ending March 31.

Super Retail will consolidate its Rays outdoor equipment brand under the Macpac badge.

‘‘The Macpac business has performed extremely well over recent years, yet there remains a significant opportunity to grow the business in the near future through opening new stores and growing its digital and commercial channels,’’ managing director Peter Birtles said in a statement to the ASX.

‘‘The integration of the business with Rays provides an opportunity to position Macpac as the leading outdoor adventure specialist across Australia and New Zealand, providing a much broader range of quality products, information and services than any other retail business.’’

Super Retail will fund the deal from existing debt, and its banking partners have increased that credit line by $A150 million

($NZ161.5 million), to give the retail group headroom to pursue a broader omniretailing strategy.

The acquisition is expected to be completed on March 31, and generate midsingle digit earnings per share gains for the ASXlisted firm.

Super Retail, which operates the BCF, Rays, Rebel and Super Cheap Auto retail brands, will take over the outdoor equipment chain after about two years in private equity ownership. — BusinessDesk