PDF - Reece Group

COMPLETION OF
ACQUISITION
31 January 2014
Reece Australia Limited completes acquisition of Actrol Group
Reece Australia Limited (‘Reece’) is pleased to confirm the completion of the acquisition of
Actrol Parts Holding Pty Ltd and its subsidiaries Actrol Parts and AC Components (trading as
Metalflex) (together ‘Actrol Group’).
The execution of transaction documentation was
announced to the market on Monday 23 December.
Actrol Group is a specialist industrial wholesale group providing components, units, systems
and refrigerant gases to the Australian heating, ventilation, air conditioning and refrigeration
(‘HVAC-R’) industry.
The acquisition represents a unique and exciting opportunity for Reece to establish a presence
in Australia’s refrigeration and air conditioning industries. Actrol Parts and AC Components
represent a compelling strategic fit with Reece and, one that will enable us to grow our
wholesale trade business and diversify our offering to our customers.
We are now focussed on working closely with Actrol Parts and AC Components management,
suppliers and customers to enact a smooth operational transition.
A presentation on the acquisition is attached.
Peter J. Wilson
Chief Executive Officer
Reece Australia Limited
Acquisition of
Actrol Group
31 January 2014
Acquisition of Actrol Group

Reece Australia Limited has purchased 100% of the Actrol Group
encompassing Actrol Parts and AC Components (trading as Metalflex and Air
Plus).

Combined, the Actrol Group has a network of 79 branches, 5 distribution
centres and a gas decanting plant.

The acquisition represents a unique and exciting opportunity for Reece to
establish a presence in Australia’s refrigeration and air conditioning industries.

Purchase price of $280m has been funded through cash reserves and debt.

The acquisition was completed on 31 January 2014.
Actrol Group Structure
Actrol Group consists of the following companies:
Actrol Parts Holdings Pty Ltd “Actrol Group”
Actrol Parts
AC Components
Metalflex
Airplus
Summary of Actrol Group

Wholesale provider of specialised
refrigeration and refrigerant based
commercial air conditioning parts and
equipment

Network of 61 branches across Australia, 5
distribution centres and a refrigerant gas
decanting plant

Product range including refrigerant gas,
controls and valves, air-conditioning and
refrigeration units and servicing equipment

Wholesale provider and distributor of
heating and air conditioning units and
components

Operates under the Metalflex and AirPlus
brands

Network of 18 branches across Australia

Product range includes heating and cooling
units and componentry for the residential
market
Actrol Group – A Good Strategic Fit

Enables Reece to establish a presence in Australia’s refrigeration and air conditioning
industry.

Actrol’s businesses are highly complimentary to Reece. They are businesses
operating in an adjacent industry. Actrol Group provides the potential to leverage
Reece’s core competencies in trade distribution.

Industry leading customer service supported by long standing staff with strong
technical knowledge.

Strong fit with our vision for growth and returns for our shareholders.
Financial Implications
Consideration
 Acquisition price of $280m
Financial Metrics
 Expected to be EPS accretive in FY2014
 FY2014 sales impact expected to be in excess of $100M
Funding
 Financing through $200M bank debt
Other
 Strong strategic fit with Reece
 Both companies will continue to operate under their existing
brands
Works
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