Another company where the legacy throws shade on the current business. Steady progress with the possibility of a bonus price spike if their hospital equipment ever makes it to market.
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Another company where the legacy throws shade on the current business. Steady progress with the possibility of a bonus price spike if their hospital equipment ever makes it to market.
A bit of a run upwards recently before it abruptly stopped in its tracks
The newer bolt ons seem to be the star performers .. forget the old old maybe whatevers which probably
should have been shut down a decade or two back or sold off for whatever they could liquidate out of
them :)
Lets not forget some of the real estate has been liquidated at a gain to give rise to a recent dividend,
still plenty of losses forward and not a smell imputation credit in sight still, if not mistaken
Oh Look - Another Bolt-on addition announced
Wonder if there is any surplus land or buildings in the new bundle that can be hocked off to cover another special dividend ? ;)
https://www.nzx.com/announcements/404465
MHM Automation conditional agreement to acquire Wyma
Quote:
MHM Automation Limited announces conditional agreement to acquire Wyma Engineering Limited
MHM Automation Limited (MHM) is pleased to announce that it has signed a conditional agreement to acquire all of the shares in Wyma Engineering (NZ) Limited (Wyma).
Wyma is a world leading manufacturer of post-harvest vegetable and fruit handling equipment. It is based in Christchurch NZ, with operations in Europe and the UK. Wyma is majority owned by interests related to Andrew and Angela Barclay.
The acquisition potentially values the Wyma business at $60m (5.5x-6x EBITDA multiple) and will be structured as follows:
•Issue of 22.67m new shares in MHM (representing 25.46% post transaction) to Barclay interests
•Initial cash payment of $28m
•Earnout of $15m over three years
This structure aligns the interests of all parties, and the businesses will be merged over time.
MHM is pleased to welcome the Barclays as a new cornerstone shareholder and Andrew will join the MHM board. MHM’s two largest shareholders who own over 40% of the company, have supported the transaction.
The transaction is conditional upon shareholder approval, finance and final due diligence. No dates have yet been set for satisfaction of these conditions precedent.
Settlement date is targeted for 1 April 2023.
MHM will provide a detailed update on the transaction, timing and shareholder approval process upon release of our half year financials in February.
Richard Rookes, CEO of MHM said “we are pleased to be joining forces with Wyma. It is a continuation of our growth strategy, providing further scale and diversification into new regions and sectors. The businesses are culturally aligned and we look forward to merging our businesses together to continue to provide our customers with world leading automated solutions”.
Andrew Barclay, MD of Wyma said “Both companies are world leaders in the Agri-tech space, with significant offshore sales. This transaction provides operational and growth synergies for both Wyma and MHM. Staff will have opportunities to grow within a larger business, while customers will benefit from a more diverse and complete offering”.
We look forward to providing further updates as we move through the process towards settlement.
the acquisition trail is consistent to similar strategy 22 + years ago under a former name before recent nameplates
past 2000 were dreamt up :)
Any reasonable dividends look to be more distant as a further 22.67 m shares get spat out to cover this add-on :)
wonder where the initial cash deposit of $28 m is coming from ? ;)
(Anyone see a fleet of well laden wheelbarrows heading out of a Canterbury bank recently or being prepared
for action ? )
The market really seems to like it. That's good for me because I bought some about 2 months ago in the low 60's.
I visited this company a year ago, spoke with the CEO and CFO and liked what I saw/heard.
Let's hope it's the bolt on they have looked for across more than 25 years.
The others have mostly not delivered well resulting in carnage over the years
In times of strong economic headwinds, any acquisition would have to be very sturdy indeed
against the risks, leveraging and finance costs taken onboard.
In times of lenders putting things through the finest microscope they can find, and
then leverage commanding highest top dollar usary rates, the ship needs to be
very seaworthy, otherwise it simply doesn't leave
Had a fair bit to do with Wyma when I was living in Czech they are a well respected operator in their space.
Always difficult to succeed away from home, no matter how good your proposition, but as a Kiwi I was very proud that this was another innovative Kiwi company showing our flag.
Andrew Barclay should be a great plus for the company.
Looks like the bubble has burst :)
https://www.nzherald.co.nz/business/...CYHOZ2O4PEG6I/
Russia-Ukraine war: NZ Foreign Minister Nanaia Mahuta declines plea for help over grain harvest
Lost Sales into Europe at MAHUTA's hands - by look of things ? ;)