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Greencross considering sale of company

Pet care company Greencross Limited has confirmed it has received a number of “credible proposals” regarding the potential sale of the business to outside parties.

The retailer confirmed the rumours in a statement to the ASX, following a report in the AFR that suggested a private equity firm was looking to purchase the struggling business.

“The proposals are subject to a number of conditions and are expressed as being non-binding and incomplete,” Greencross’ head of investor relations Robert Wruck said in a note to investors.

“The proposals are required to be kept confidential, and there is no certainty that any proposal will result in a transaction involving Greencross, what the terms of any such offer would be, or whether there will be a recommendation by the Board of Greencross.”

The company’s net profit dropped 51 per cent to $20.7 million in FY18, due to a sizeable write-down of exceptional items, signalling a year of “substantial change”.

But the recent interest from private equity investors would appear to back up what Greencross chief executive and managing director Simon Hickey asserted in August – namely, that the company’s mix of retail and services and highly engaged customer database are a potent mix.

Pet care company Greencross Limited has confirmed it has received a number of “credible proposals” regarding the potential sale of the business to outside parties.

The retailer confirmed the rumours in a statement to the ASX, following a report in the AFR that suggested a private equity firm was looking to purchase the struggling business.

“The proposals are subject to a number of conditions and are expressed as being non-binding and incomplete,” Greencross’ head of investor relations Robert Wruck said in a note to investors.

“The proposals are required to be kept confidential, and there is no certainty that any proposal will result in a transaction involving Greencross, what the terms of any such offer would be, or whether there will be a recommendation by the Board of Greencross.”

The company’s net profit dropped 51 per cent to $20.7 million in FY18, due to a sizeable write-down of exceptional items, signalling a year of “substantial change”.

But the recent interest from private equity investors would appear to back up what Greencross chief executive and managing director Simon Hickey asserted in August – namely, that the company’s mix of retail and services and highly engaged customer database are a potent mix.
Source: Inside Retail Australia