Metcash Buys Mitre 10 for $46.5m

Grocery wholesaler, Metcash (ASX:MTS) has held 50.1 percent of Mitre 10 for more than 2 years and has paid $46.5 million for the remaining share. The acquisition of the remaining 49.9 percent stake includes over 400 Mitre 10 and True Value retail shopfronts as well as distribution rights to over 400 independent unbranded hardware shops.

Metcash CEO, Andrew Reitzer said that, "Mitre 10 has proven to be a highly strategic and value-adding business pillar for Metcash. The acquisition will provide an enhanced ability for Metcash to leverage its merchandising and brand management skills and logistics capability into the hardware sector. Mitre 10 is the last true independent hardware group. Metcash is pleased to stand behind their commitment to delivering ‘Mighty Helpful’ service to their customers by offering the best products and advice"

Metcash is a groceries distributor for independent retailers such as Franklins, IGA and Cellarbrations. The company has also raised $325 million in a share sale to fund the Mitre 10 acquisition, as well as the purchase of Automotive Brands Group.