Macquarie-advised EBOS hounds Greencross; deal in the offing

afr.com:

Acquisitive Australasian health care group EBOS is closing in on a deal to acquire TPG Capital-backed Greencross, Street Talk can reveal.

It is understood EBOS, which has a $7.1 billion ($6.6 billion) market capitalisation on the New Zealand Stock Exchange, has engaged Macquarie Capital banker David Mustow for advice. Greencross is working with Jefferies Australia’s Michael Stock. A deal is expected to be signed in coming weeks.

Greencross vet Dr Lindsay Evans treats cairn terrier Oscar. Simon Schluter

Christchurch-headquartered EBOS is a wholesaler and distributor of healthcare, pet care, medical and pharmaceutical products. It’s owned trans-Tasman group Masterpet since 2011 but also houses well known brands, Black Hawk and Vitapet. It most recently bought Superior Pet Food Co for $NZ83.8 million in July this year. The acquisition was fully funded through existing debt facilities and cash on hand.

While a deal between the two parties has not yet been signed, TPG, which took Greencross private in 2019 at $5.55 per share, sold a 45 per cent stake in the pets and vets business to AustralianSuper and the Healthcare of Ontario Pension Plan in early 2022. That transaction valued Greencross at more than $3.5 billion.

Greencross’ latest accounts, for the 12 months to June 26, show revenues climbed from $1.3 billion to $1.6 billion. Net profit after tax fell from $88 million in 2021 to $83 million.

Investors with keen memories will recall that in 2015, EBOS participated in an auction for the then-listed Greencross, which attracted a swarm of big buy-out funds with experience in the pet business globally. At the time, the Macquarie-advised pharmacy wholesaler already held a 50 per cent interest in specialty pet care retailer