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- Maggie Beer Holdings (MBH) has agreed to purchase eCommerce company Hampers & Gifts Australia in a $50 million cash-scrip deal
- To help fund the purchase, MBH is looking to raise up to $30 million
- The capital raise will see company shares being offered at 35 cents each, representing a 4.1 per cent discount to yesterday’s closing price
- The purchase comes as Maggie Beer Holdings aims to boost its eCommerce business which grew by 167 per cent in the December half
- Company shares have entered a halt this morning ahead of completing this capital raise
- Maggie Beer Holdings last traded at 36.5 cents per share on March 29
Maggie Beer Holdings (MBH) has agreed to purchase eCommerce company Hampers & Gifts Australia in a $50 million cash-scrip deal.
The consumer stock, created by celebrity chef Maggie Beer, will raise up to $30 million to help fund the purchase.
Under the purchase agreement, MBH will acquire all shares in Hampers & Gifts. A $40 million upfront payment will be paid in half cash and half scrip, while the remaining $10 million will depend on the business achieving a $10 million earnings target in FY23.
The purchase comes as Maggie Beer Holdings is aiming to boost its eCommerce business, which grew by 167 per cent in the December half.
Hampers & Gifts is a eCommerce gourmet hamper and gift business and has become one of Australia’s leading online hamper, gifts and experience retailers.
The capital raise will see company shares being offered at 35 cents each, representing a 4.1 per cent discount to yesterday’s closing price.
Maggie Beer Holdings CEO Chantale Millard says the purchase is a key strategy to grow the company’s eCommerce and direct to consumer business.
“This exciting opportunity will allow us to do this whilst partnering with a fantastic e-commerce hamper and gifting business, which has an amazing team
and is very profitable and cash generating. It will help us transform the MBH Group and move it to its next level of growth,” she said.
Hampers & Gifts Founder and Creative Director, Emily McWaters, is pleased with the purchase.
“There is significant mutual benefit across the two businesses, and we look forward to working with Chantale and the team to create an even better customer experience,” she said.
“I grew up in South Australia and live on Kangaroo Island, and so a partnership
with an iconic South Australian brand such as Maggie Beer could not be more perfect,” she added.
Company shares entered a halt this morning ahead of completing this capital raise. Under the halt, company shares will be paused until Thursday, April 1.
Maggie Beer Holdings last traded at 36.5 cents per share on March 29.
