By Phil Boeyen, ShareChat Business News Editor
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Friday 31st August 2001 |
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The vending company is buying Soche, Australia's largest independent vending business, which owns and operates machines in Victoria, New South Wales and Queensland.
Under the agreement VTL will acquire the Soche name, signage and business assets in Melbourne, Brisbane and Sydney and will also retain its engineering division, which carries out contracted services for Soche and other vending companies.
Chairman Richard Janes says the company regards the Soche acquisition as a platform business that can be enhanced with VTL's smart software and business models.
He says the company will progressively refurbish the machines with SmartVend software and use it as a springboard to launch and rollout the VendSmart franchising programme into Australia.
"In addition to the immediate expanded Australian business base, the Soche purchase also gives VTL access to a team of experienced Australian vending executives."
VTL has been operating in Australia for 18 months and has offices and sales teams in Melbourne and Brisbane.
"The Soche acquisition creates several other vending opportunities in the form of exclusive agencies for the Australasian market on behalf of a number of international vending machine manufacturers, a coffee vending and machine leasing programme."
Dr Janes says the company will review the agencies with the intent of extending them into its other operations.
The rights issue is to help fund the purchase will be one new share at $2.50 for every ten shares held to raise $7.375 million. $2.5 million will fund the acquisition and integration of Soche.
"At one for ten, the rights issue is relatively small and attractively priced at a significant discount to market. It nonetheless leaves VTL free of long term debt and provides considerable flexibility for subsequent acquisitions," says Dr Janes.
"The company is evaluating a number of other opportunities at present and expects to be able to announce one or more further acquisitions before the end of the financial year."
VTL says it remains on target to at least achieve its February 2001 profit forecast for the year to 31 March 2002 of $4.9 million after tax. VTL listed last November, raising $5 million net.
The company's objective is to become the pre-eminent independent food and drink vending company in Australasia, targeting the 20-30% of the vending market that is serviced by fast moving consumer goods independent vending companies.
Manufacturers such as Coca-Cola Amatil currently dominate distribution in both countries.
Earlier this year the company purchased an Auckland-based vending business, Snacktime, which it says has been smoothly integrated into its existing business.
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