Stealth Global Holdings Limited (ASX:SGI) agreed to acquire C & L Tool Centre for AUD 3.8 million on November 26, 2020. Under the terms of transactions, AUD 2.45 million to be settled in cash on December 1, 2020, AUD 0.48 million in new Stealth Global Holdings Limited shares issued at 10 cents and escrowed for 12 months. These are expected to be issued on or before December 1, 2020 pursuant to Stealth Global Holdings Limited 15% placement capacity and AUD 0.9 million deferred payment consideration to be paid over 12 months subject to achieving required profit and tenure thresholds. The shareholders of C & L Tool Centre will also receive 25% share of net pre tax profit earned above AUD 0.9 million in the 12 month period following completion. The consideration will be funded through Stealth Global Holdings Limited existing cash and debt facilities. Purchase consideration of AUD 3.83 represents a purchase multiple of 3 times EBITDA as of June 30, 2020. Post completion, directors and management of C & L Tool Centre will remain with C & L Tool Centre. As of June 30, 2020 the revenue and EBITDA of C & L Tool Centre are AUD 14.3 million and AUD 1.26 million respectively. The transaction is expected to be completed on or before December 1, 2020.
Stealth Global Holdings Limited (ASX:SGI) completed the acquisition of C & L Tool Centre for AUD 3.7 million on December 2, 2020. All consideration for the acquisition has been paid as per the terms of agreement. As part of consideration 4.8 million shares of Stealth Global Holdings were issued.