Hellaby buys Sydney-based Ryde Batteries for about A$12 mln to boost largest unit

Hellaby Holdings, the diversified investment company, has acquired Sydney-based Ryde Batteries in a deal valued at A$12 million to bolster its automotive division.

The purchase settled yesterday and the Australian wholesale automotive and special purpose battery company will add to earnings per share this financial year, the Auckland-based company said in a statement.

Ryde, which trades as Federal Batteries, distributes nationally in Australia and is complementary to Hellaby's New Zealand battery distributor HCB Technologies. Automotive is Hellaby's largest unit, with annual earnings before interest and tax of about $20 million.

"This purchase significant strengthens our position in the trans-Tasman battery market," Hellaby managing director John Williamson said in the statement.

The acquisition will add about $3 million a year to Hellaby's earnings before interest, tax, depreciation and amortisation.

In the 12 months ended June 30, Hellaby's gearing rose to 17.8 percent from 6.3 percent after it increased debt to acquire 85 percent of oil and gas services business Contract Resources. Its debt remained well below its ceiling of 45 percent.

The founders of Ryde Batteries will remain in the business in senior positions, Hellaby said.

Hellaby stock last traded at $2.86 and has fallen 14 percent this year.

BusinessDesk.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Hellaby FY profit falls 5.8 percent , meets guidance; Contract helps lift sales
Hellaby shares fall 2.7 percent after halt for $40M placement lifted
Hellaby halts shares for $50M capital raising at 10 percent discount
Hellaby first-half profit falls 21 percent on weaker shoe sales, corporate costs
Hellaby finally finds acquisition in Contract Resources
Hellaby lifts FY profit 26 percent on equipment, automotive divisions
Former Frucor head Mark Cowsill named to Hellaby board
Hellaby Holdings
Hellaby lifts 1H net profit 42%
Hellaby seeks new funds and an Oz-savvy director