Greencross Ltd: Acquisition Of City Farmers
1. Executive Summary
Greencross Limited, the company behind Petbarn stores and Greencross vets expanded into Western Australia with a $205 million takeover of petcare retailer City Farmers. Greencross' purchase of City Farmers added 42 stores to its network, taking its total number to 177, plus 108 vet clinics.
Greencross funded its takeover of City Farmers by offering new shares to the former owners, existing Greencross shareholders and institutional investors.
The transaction results in a Greencross with a market share of 7.5%, which is acceptable to the competition regulators.
The transaction will result in a capital gains tax exposure for City Farmers shareholders, who may be eligible for a rollover relief.
2. Introduction
Acquisition …show more content…
Companies perform acquisitions for various reasons: they may be seeking to achieve economies of scale, greater market share, increased synergy, cost reductions or for many other reasons. The acquiring company would usually proceed with the corporate action by offering to purchase the shares from the shareholders of the target company. Often, a cash offer is made but sometimes the acquiring company may offer to trade its own shares in exchange for the target company's shares.
Takeovers in Australia are regulated by a combination of legislation and regulatory policy. The takeovers rules apply to acquisitions of ASX listed Australian companies, ASX-listed Australian managed investment schemes (being investment trusts), and unlisted Australian companies with more than 50 shareholders.
The takeovers rules reflect policies …show more content…
The company was established in 1994.
Greencross Limited provides veterinary services and retail sells related animal products from veterinary practice locations. Its Retail segment sells specialty pet care products and services in Australia and New Zealand.
The company’s veterinary segment provides veterinary services. It offers general, specialist, and emergency veterinary support services consisting of vaccinations, microchipping, desexing, surgery, intensive care hospitalisation, radiology, pathology, dentistry, electrocardiography, doppler blood pressure measurement, and in-house pharmacy services. The company also provides pathology, crematorium, grooming, dog wash, training, retail, online and insurance support. It offers services to dogs, cats, birds, and reptiles.
Greencross has over 175 stores, operating under the brand names of Petbarn in Australia and Animates in New Zealand.
Greencross’ strategy is to continue to consolidate the fragmented veterinary services, pet food and pet accessories markets in Australia and New
Greencross Limited, the company behind Petbarn stores and Greencross vets expanded into Western Australia with a $205 million takeover of petcare retailer City Farmers. Greencross' purchase of City Farmers added 42 stores to its network, taking its total number to 177, plus 108 vet clinics.
Greencross funded its takeover of City Farmers by offering new shares to the former owners, existing Greencross shareholders and institutional investors.
The transaction results in a Greencross with a market share of 7.5%, which is acceptable to the competition regulators.
The transaction will result in a capital gains tax exposure for City Farmers shareholders, who may be eligible for a rollover relief.
2. Introduction
Acquisition …show more content…
Companies perform acquisitions for various reasons: they may be seeking to achieve economies of scale, greater market share, increased synergy, cost reductions or for many other reasons. The acquiring company would usually proceed with the corporate action by offering to purchase the shares from the shareholders of the target company. Often, a cash offer is made but sometimes the acquiring company may offer to trade its own shares in exchange for the target company's shares.
Takeovers in Australia are regulated by a combination of legislation and regulatory policy. The takeovers rules apply to acquisitions of ASX listed Australian companies, ASX-listed Australian managed investment schemes (being investment trusts), and unlisted Australian companies with more than 50 shareholders.
The takeovers rules reflect policies …show more content…
The company was established in 1994.
Greencross Limited provides veterinary services and retail sells related animal products from veterinary practice locations. Its Retail segment sells specialty pet care products and services in Australia and New Zealand.
The company’s veterinary segment provides veterinary services. It offers general, specialist, and emergency veterinary support services consisting of vaccinations, microchipping, desexing, surgery, intensive care hospitalisation, radiology, pathology, dentistry, electrocardiography, doppler blood pressure measurement, and in-house pharmacy services. The company also provides pathology, crematorium, grooming, dog wash, training, retail, online and insurance support. It offers services to dogs, cats, birds, and reptiles.
Greencross has over 175 stores, operating under the brand names of Petbarn in Australia and Animates in New Zealand.
Greencross’ strategy is to continue to consolidate the fragmented veterinary services, pet food and pet accessories markets in Australia and New