LAU -3.51%: trucking and agricultural services business announced a small bolt-on acquisition today of WB Hunter to expand their rural merchandising reach. The $34.6m acquisition of the 8-store rural supplies, agricultural services and trade essentials business is expected to be high-single digit accretive pre-synergies, picked up at ~6x FY24 EBIT. Lindsay also noted that EBITDA for FY23 is now expected at the upper end of the $85-90m range. The bulk of the company’s earnings come from its transport segment with road and rail services, a segment that could benefit from last week’s CPI data which showed a significant drop in the cost of Automotive Fuels.
MM is bullish LAU, adding to our Emerging Companies Hitlist
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