Mitre 10 Group

Background

The Mitre 10 Group is a leading Australian home improvement wholesaler to independent Mitre 10 branded and non-Mitre 10 branded home improvement stores. At the time of the transaction, the Mitre 10 Group had experienced a challenging operating environment along with a complex corporate structure consisting of two unlisted public companies, Mitre 10 Australia and Mitre 10. The shareholders in these companies largely consisted of the owners of independent Mitre 10 branded stores.

Process

Greenstone Partners conducted a broad process to identify a range of credible potential strategic and financial investment partners who were short-listed and participated in a due diligence process. The transaction execution phase of the process was complex requiring two contemporaneous and inter-conditional Schemes of Arrangement.

Result

The complex transaction structure was successfully executed with a high acceptance rate from shareholders. Despite negative net assets, the transaction valued the Mitre 10 Group at an enterprise value of $125 million. Furthermore, the transaction positioned the Mitre 10 Group to more effectively support its store-owner shareholders in a period of unprecedented competition in the Australian home improvement industry.