Company news: CML Group and Woolworths
Australian Equities Portfolio
CML Group announced it has completed the acquisition of skippr – an online invoice financing platform. The platform will allow CML Group to lend to profitably extend financing to smaller customers than it has historically (<$200k in receivables) and also improve the experience for larger customers once integrated. CML plans to launch an expanded product using the technology next month.
Woolworths announced it intends to acquire a 65% stake in PFD foods. PFD foods is a foodservice network which distributes goods to a range of businesses within the hospitality industry including pubs and clubs, cafes, airlines, hotels and restaurants. As part of the acquisition, Woolworths will acquire 26 of PFD’s distribution centres. The acquisition strengthens both Woolworth and PFD’s distribution network and brings Woolworths operational capabilities and ability to capture/utilise data to PFD. We see that Woolworths will be paying a fair price for the business, however, the acquisition is subject to receiving necessary regulatory approvals.