Sale of Australian pet care company Greencross fails (again)
Medical and pharma product distributor EBOS Group did not manage to raise AU$2 billion ($1.3B/€1.2B) from investors.
The potential sale of Greencross, owner of Greencross Vets and pet retailer Petbarn, fell through.
New Zealand distributor, wholesaler and marketer of healthcare products EBOS Group had bid AU$3.75 billion ($2.4B/€2.2B) for the business. However, the company has confirmed to GlobalPETS that the transaction will not move forward after engaging in discussions regarding the “potential strategic transaction.”
“These discussions have now concluded, and a transaction will not proceed,” a spokesperson says.
Reuters reported that the sale did not go through because there was a weak demand from EBOS investors to fund the substantial capital raising of AU$2 billion ($1.3B/€1.2B).
Market reaction
EBOS’ shares slumped by 7% after the news came out that the company was interested in buying Greencross. Reuters wrote that EBOS’ stock was to sell at a 12% discount. The news outlet stated that the significant discount in the market would have been highly dilutive to its investors.
Amid the complications, the medical and pharma product distributor was put under a trading hold because of the weaker-than-expected demand from its investors.
This is the second time in recent months that the sale of Greencross has fallen through. Earlier in September, Australian conglomerate Wesfarmers was exploring taking over the company.
Local media pointed out that the deal was being seriously considered, but it did not come to fruition in the end.
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