Ashley Services Group Limited (ASX:ASH) entered into an agreement to acquire Owen Pacific Workforce Pty Ltd for AUD 15.9 million on February 3, 2023. The acquisition price for the 100% purchase of OPW is expected to be between AUD 14.2 million and AUD 15.9 million in total, based primarily on EBITDA for the financial year ending June 30, 2023, which is expected to be between AUD 4.1 million and AUD 5.0 million. The initial purchase consideration payment of approximately AUD 7.1 million will be funded from newly extended bank facilities with Westpac.

The new facilities with aggregate limits of AUD 45 million are comprised of an invoicing facility of AUD 25 million and a new acquisition facility of AUD 20 million expiring December 28, 2025, the latter replacing the previous AUD 10 million Bank Bill Business loan facility, on similar terms and conditions. Remaining conditions precedent are expected to be fulfilled shortly. The transaction is expected to complete on February 6, 2023.

The acquisition is expected to be Earnings Per Share accretive in the financial year ending June 30, 2024.