For $45.1 million, Australian jeweller Michael Hill purchased Bevilles, a watch and jewellery retailer with substantial development potential. Conditions antecedent, such as regulatory approvals from the Australian Competition and Consumer Commission and the Fair Work Commission, among others, must be met before the transaction may take place.
“Bevilles is a highly profitable business, with clearly defined market positioning and a talented and highly capable team,” stated Daniel Bracken, Chief Executive Officer and Managing Director at Michael Hill. As the Michael Hill brand continues its ascent into a more premium positioning, expanding the store network in Australia is a really exciting prospect for the firm. The collaboration between our two teams to implement the group strategy excites me.
According to the firm, the acquisition should be immediately accretive and present significant prospects for growth and EBITDA enhancement. In order to complement Bevilles‘ own objective of growing its addressable market, Michael Hill intends to extend the chain’s network of locations and use synergies with its own expertise.
Between $60 million and $65 million is predicted to be Bevilles‘ revenue for FY23, while between $7.5 million and $8.5 million is predicted to be its adjusted underlying EBITDA.