Hancock & Gore announces merger with Schoolblazer Limited

Hancock & Gore Limited (ASX:HNG) has entered a binding agreement with United Kingdom-based Schoolblazer Limited to merge with its 100%-owned subsidiary Mountcastle Group. The merger will create a global uniforms platform with school wear segment leadership positions in the UK, Australia, and New Zealand. The transaction is valued at approximately £31m (c.A$60m) and is subject to H&G shareholder approval.

Executive commentary on the merger

Tim James, Co-Founder of Schoolblazer, expressed excitement about the merger, stating, 'This is an exciting time for Schoolblazer and represents the next chapter of our growth story. It gives opportunities for our team and our customers, bringing access to more product and scale. We are certain that this will allow us to bring more change and disruption to the market, for the benefit of our customers and our people.' Sandy Beard, H&G Executive Chairman, also commented, 'We are full of admiration for what Schoolblazer have achieved in the UK and are looking forward to bringing their skills and know-how to play in the Australian market.'

Summary of the merger and outlook

Hancock & Gore's merger with Schoolblazer Limited and Mountcastle Group will create a global uniforms platform with a strong presence in the UK, Australia, and New Zealand. The transaction is valued at approximately £31m (c.A$60m) and is expected to result in a combined business with c.A$109m FY24 revenue and c.A$17m EBITDA on a pro-forma basis, before synergies. The merger is anticipated to bring about procurement synergies and complementary offerings in respective markets, with Australia identified as a key growth market for Schoolblazer. The completion of the transaction is expected in mid-October 2024, subject to H&G shareholder approval. The company aims to leverage the merger to drive growth and expansion, with a focus on developing Schoolblazer's unique offering in the Australian market and further global expansion.