HWLE gets to the nub of things in bolt-on acquisition
HWL Ebsworth has advised Coventry Group Ltd (ASX:CYG) on its $36 million 100% acquisition of Nubco. Founded in 1982, Nubco is the largest independent Tasmanian hardware and industrial supplier in the industrial segment with seven locations across the State.
The acquisition was in part funded via a successful $27.6 million pro-rata accelerated non-renounceable entitlement offer, on which the firm also advised. The balance of the purchase price was funded by the issue of Coventry shares to the Nubco vendor and from Coventry’s existing debt facilities.
Coventry delivers innovative industrial solutions to the mining, construction and manufacturing sectors, supplying a range of fastening systems, cabinet hardware systems and hydraulics, lubrication, fire suppression, refueling systems and products. The Nubco acquisition offers tangible synergies that will benefit Coventry’s Australia-wide business by delivering procurement cost savings and knowledge transfer, and providing immediate earnings to Coventry and cash generation.
The HWL Ebsworth team was led by Jeremy McCarthy (Corporate M&A Partner, Melbourne) and David Woodford (Corporate ECM Partner, Melbourne), with assistance from Paul Lewis (Special Counsel, Melbourne) and Nathalie Ng (Associate, Melbourne).
This transaction is the third in which the firm has acted for Coventry in recent times, following on from the sale of AA Gaskets to GUD and the purchase of Torque Industries in late 2018.