EBOS shares shed 2.9% after failed Greencross takeover
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More news: Shares in EBOS have fallen 2.9% after abandoning plans to buy pet care business Greencross. EBOS shares were trading at $33.97 at 11:30am AEDT.
EBOS’ $3.8bn Greencross aquisition collapses
The news: Trans-Tasman pharma distributor EBOS has called off plans to buy pet care business Greencross for $3.75 billion.
The numbers: The acquisition was expected to be a major growth opportunity for EBOS, which has a $6.7 billion market value and a net debt of $766 million. Greencross has the largest vet services operation in Australia, with more than 160 clinics, and was taken private in 2019 by TPG Capital. It is understood that the EBOS wanted to source $2 billion from investors in a deal backed by AustralianSuper to fund the transaction.
The context: Christchurch-headquartered EBOS is a wholesaler and distributor of healthcare, pet care, medical and pharmaceutical products. The ASX- and NSX-listed company announced to the market on Wednesday that talks over the acquisition had concluded and the transaction would not proceed. According to The Australian, sources said EBOS was unable to gain enough backing for an equity raising to fund the transaction.
The sources: NZX Announcement, The Australian
