Australian jeweller Michael Hill has acquired Bevilles, an Australian watch and jewellery retailer, with significant growth potential for $45.1 million. The acquisition is subject to conditions precedent, including regulatory approvals from the Australian Competition and Consumer Commission and Fair Work Commission, among others.
Daniel Bracken, Michael Hill’s Chief Executive Offer and Managing Director said: “Bevilles is a highly profitable business, with clearly defined market positioning and a talented and highly capable team. Expanding the store network in Australia represents an extremely exciting opportunity for the group, as the Michael Hill brand continues its journey to elevate into a more premium positioning. I’m looking forward to our two teams working together to deliver the group strategy.”
The purchase is expected to be immediately accretive and offers substantial EBITDA enhancement and growth opportunities that are expected to be readily achievable, the company noted. Michael Hill plans to expand Bevilles’ network of stores and unlock synergies with its own expertise, thereby complementing its own strategy of expanding its addressable market.
The acquisition is in line with Michael Hill’s brand elevation journey into the premium segment, while Bevilles provides value-oriented products to a broad spectrum of customers.
Bevilles’ revenue for FY23 is estimated to be between $60 million and $65 million, while adjusted underlying EBITDA is estimated to be between $7.5 million and $8.5 million.
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