Hancock & Gore Ltd (ASX:HNG) announces merger with Mountcastle and Equity Placement

Hancock & Gore Ltd (ASX:HNG) has announced a significant development with the merger of its 100%-owned asset Mountcastle with Schoolblazer, creating a global school uniform platform. The merger positions the company as a leader in the school wear segment in the UK, Australia, and New Zealand. The transaction is valued at approximately $60 million and is expected to generate strong revenue and EBITDA before synergies. The upfront cash consideration for this merger will be funded through an equity placement to raise a target of $15 million, with a significant portion indicatively committed by H&G and Mountcastle Executives and Directors, subject to shareholder approval where required.

Executive Commentary on Merger and Equity Placement

The merger with Schoolblazer marks a significant milestone for Hancock & Gore, positioning us as a global leader in the school uniform market. This strategic move aligns with our goal of creating a 100%-owned operating business with strong revenue and EBITDA generation. The merger also provides us with the capability for M&A and optionality over the capital structure, enhancing our position in the market. The equity placement to fund the upfront cash consideration demonstrates our commitment to driving growth and creating value for our shareholders.

Summary of Merger and Equity Placement

Hancock & Gore's merger with Schoolblazer and Equity Placement signifies a transformative step towards establishing a global school uniform platform. The merger is expected to position the company as a leader in the school wear segment in the UK, Australia, and New Zealand, with a strong focus on revenue generation and EBITDA. The equity placement to fund the merger underlines the company's commitment to driving growth and maximizing shareholder value. With a strong outlook for the future, Hancock & Gore aims to leverage the synergies from this merger to further enhance its market position and pursue opportunities for expansion and growth.