Sale of Business AssetsDecember 15, 2017
Melbourne Australia: Dueltek Pty Ltd, a wholly owned subsidiary of Stokes Limited, has signed a contract (subject to normal closing conditions) for the sale of its Dueltek Distribution business and associated business assets to Omega Power Equipment Pty. Ltd. The business assets principally comprise trading stock, plant & equipment and interests under existing contracts and supply agreements. The transaction will result in cash proceeds on completion (being 15 December 2017) of A$787,642 which is net of a provision set aside of $456,676 calculated by reference to stock sales aging. Pursuant to the agreement the stock provision set aside will be reassessed in six and twelve months based on stock line sales performance with a further payment up to the maximum provision potentially payable. In addition, there is an ability to receive up to a further $100,000 under the agreement based on an EBITDA earn out calculation, which if payable, will be settled by 29 August 2018.
The sale forms part of a strategy to focus on the core Stokes business operations of audio visual and lighting solutions with the proceeds to be directed to supporting the working capital needs of those business units.
Mr Jinks said “the purchase by Omega Power Equipment of the Dueltek distribution business is a great outcome for both parties. It enables Omega Power Equipment to leverage an established pipeline of audio visual and IT products and quality vendor relationships. Stokes looks forward to completing the transition process and progressing a future relationship with Omega Power Equipment.”
For further information contact:
Chairman & Managing Director
Phone 03 9289 5000