Kiwis swallow local drugs group in agreed $729m takeover
The combined company will have revenue of $5.2 billion, making Ebos the third-largest company by revenue listed on the New Zealand stock exchange.
The bulk of the revenue will come from Symbion, which distributes prescription medicine, over-the-counter drugs and veterinary products to pharmacies, hospitals and vets across Australia.
Owned by Swiss company Zuellig since 2008, Symbion reported more than $3.8 billion in revenue last year and earnings before interest, tax, depreciation and amortisation of $108.5 million.
The combined business will list on the Australian Stock Exchange by the end of the year, but will be 40 per cent owned by Zuellig, which already had a small stake in Ebos through a subsidiary.
An ASX listing would mean Ebos joins the likes of Fisher & Paykel Healthcare, Kathmandu and Telecom Corp as NZ-based companies listed in Australia.
"[An] ASX listing is a really important part because of the Aussie instos [institutions]," Ebos managing director Mark Waller said during a news conference.
"We want to increase liquidity ... it will also create a much greater coverage of a combined business because the Australian market understands the space well, where in NZ we are the only listed player," he said.
The combined group, to be headed by Mr Waller, will become the third listed pharmaceutical wholesaler in Australia.
Symbion chief executive Patrick Davies said the 1300 Australian staff would retain their jobs and the outlook for the local business was positive, despite pressures on the health budget.
Frequently Asked Questions about this Article…
Ebos Group, a New Zealand healthcare and animal care products company, agreed to buy Australian drug wholesaler Symbion in a A$729 million takeover, creating a larger combined business across Australia and New Zealand.
The merged company is expected to have about A$5.2 billion in revenue, with the bulk of that coming from Symbion’s operations distributing prescription medicines, over‑the‑counter drugs and veterinary products across Australia.
Yes — the combined group is planned to list on the Australian Securities Exchange (ASX) by the end of the year. Ebos’ managing director Mark Waller said an ASX listing will increase liquidity and attract Australian institutional investors, improving market coverage for the business.
Swiss company Zuellig, which has owned Symbion since 2008 and already held a small stake in Ebos, will own about 40% of the combined business after the transaction.
Symbion reported more than A$3.8 billion in revenue in the last year and an EBITDA (earnings before interest, tax, depreciation and amortisation) of A$108.5 million.
The combined group will be headed by Ebos managing director Mark Waller, who commented publicly on the benefits of an ASX listing for liquidity and investor coverage.
Symbion chief executive Patrick Davies said the company’s 1,300 Australian staff would retain their jobs and that the outlook for the local business remained positive despite pressures on the health budget.
The deal would see Ebos join other NZ-based companies that list in Australia, such as Fisher & Paykel Healthcare, Kathmandu and Telecom Corp, and make Ebos one of the larger NZ companies by revenue on the New Zealand exchange while expanding its presence on the ASX.
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