Hellaby adds $20m in annual sales with NZ Trucks, Dasko acquisitions
Hellaby Holdings [NZX: HBY], whose interests range from footwear to oil and gas services, expects to add $20 million to annual revenue after buying New Zealand Trucks South Island and Dasko Marketing NZ.
The Auckland-based investor paid "less than $10 million" for the auto-related companies and expects they will deliver a combined $2.5 million boost to yearly earnings before interest, tax, depreciation and amortisation, it said in a statement.
New Zealand Trucks is a Christchurch-based truck servicing business while Auckland-based Dasko is a distributor of auto electrical, fuel and engine management components to auto retailers. Both companies were acquired in private transactions.
Hellaby's automotive division, which includes tyre distribution and wheel alignment services, industrial batteries and wholesale diesel products, recorded $84.5 million in sales in the six months ended Dec. 31 and EBITDA of $8.5 million.
Shares in Hellaby fell 0.7 percent to $2.88 and have declined 7.1 percent in the past 12 months. Its recommendation was evenly split between a 'buy' and 'hold' according to four analysts surveyed by Reuters, with a median price target of $3.48.