A takeover of the WB Hunter business is likely to open the way for an expansion of Lindsay Australia’s rural merchandise into Victoria.
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The company announced it had purchased the WB Hunter business last week for $34 million.
The acquisition will give the Queensland-based LIndsay Australia business seven merchandise stores in Victoria and one in NSW.
The purchase will also see the end of the Hunter family’s ownership of the business, which was established by former mayor and community leader Bill Hunter in 1947.
“We’ve had offers over the years, but nothing as good as this one, particularly the commitment to growing the business and keeping the staff,” WB Hunter chief executive officer Michael Moroney said.
Mr Moroney, who is also a WB Hunter director and member of the family, said customers would not see any changes to the business.
Lindsay Australia is likely to be looking for opportunities to expand the company’s presence with further outlets in Victoria.
The purchase will allow Lindsay Rural to scoop up a diversified sales mix of key agricultural supplies and supporting services with a broad base of more than 10,000 commercial and retail customers.
Although the 100 per cent purchase ends the ownership by the Hunter family, Mr Moroney will be continuing as chief executive.
Lindsay acting chief executive Craig Baker said he was delighted to welcome WB Hunter into the Lindsay network.
“WB Hunter has a long-standing and highly successful operating history, serving as an integral member of Australia’s rural supplies market,” Mr Baker said.
“The acquisition expands Lindsay’s presence in key growth markets of Victoria and NSW and provides a strong platform for pursuing further growth opportunities across these regions.”
WB Hunter has stores in Echuca, Tatura, Euroa, Katandra, Yarrawonga, Corowa, Wangaratta and Shepparton.
The Shepparton WB Hunter merchandise store.
Lindsay Australia has advised the stock market it expects to achieve earnings for the 2023 financial year of between $85 million and $90 million.
The financing of the acquisition will comprise of an upfront cash component, a scrip component of $7.2 million and a deferred cash payment for the inventory assets of about $14.5 million.
All cash components of the transaction will be funded through Lindsay’s existing cash holdings.
Lindsay Australia recorded revenue of $337 million for the first half of the last financial year.
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