HNL has announced it has entered into a binding letter of intent with Empire Camp Equipment Ltd. (“Empire”) for a purchase price of $44.5 mm (undisclosed mix of cash and shares). We believe Empire will contribute $10 mm of EBITDAS in 2017e, which puts the transaction multiple at ~4.3x EV/EBITDAS. We estimate the EV/replacement value metric at 66%. Our 2016e EBITDAS has moved higher by 6.8% and 2017e is up 23.5% to $54 mm.
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Announces Accretive $44.5 mm Acquisition
- Published:
22 Jul 2016 -
Author:
Ian B. Gillies -
Pages:
6
HNL has announced it has entered into a binding letter of intent with Empire Camp Equipment Ltd. (“Empire”) for a purchase price of $44.5 mm (undisclosed mix of cash and shares). We believe Empire will contribute $10 mm of EBITDAS in 2017e, which puts the transaction multiple at ~4.3x EV/EBITDAS. We estimate the EV/replacement value metric at 66%. Our 2016e EBITDAS has moved higher by 6.8% and 2017e is up 23.5% to $54 mm.