(07-04-2025, 08:36 PM)weijian Wrote: The last bolt-on acquisition THG did was back in 2019 when it bought out a family own boutique in NZ for 35mil.
There is not much information wrt to this Aus acquisition and THG is paying ~8x earnings, which is just slightly cheaper than buying back its own shares. Nonetheless, the reduction in NTA post acquisition suggest that there is substantial intangibles been recognized on the BS, meaning most of the retail pieces are not transferred over.
PROPOSED ACQUISITION OF SPV IN AUSTRALIA
The Acquisition is in line with the Group’s strategy to continue expanding its presence in Australia and strengthen the Group’s retail footprint. The Acquisition is expected to provide both an enlarged client base and operating synergies to THGA’s business.
The consideration for the Acquisition is A$90.0 million (approximately S$75.6 million) (the “Purchase Consideration”). Under the SPA, the vendors will undertake a restructuring pursuant to which certain dealership rights, leases in prime locations and inventories will be transferred to SPV (the “Business”). The Purchase Consideration was arrived at on a willing-buyer and willing-seller basis, taking into account the earnings potential and assets of the Business.
https://links.sgx.com/FileOpen/Acquisiti...eID=839196
We finally have understanding of this 75mil sgd acquisition of an Aus SPV from AR25. THG has bought all the Rolex retail ops from Kennedy Watches and Jewellery. Post acquisition, THG is probably the biggest individual Rolex retailer in Aus and I suppose the Tays are wise enough to have gotten Rolex's blessings before they went ahead with the purchase.
Besides 4 new Rolex standalone boutiques, THG OPMIs should also be excited about the first (of the many) standalone Patek Philippe boutique that opened in Ginza in Oct last year (as per VB dydx). Dr Henry Tay has pointed out that the luxury watch market is currently in a dual track system - most desirable brands are growing and the rest are shrinking at the same time. THG is premium-izing and on the correct track. More CAPEX, higher inventory turnover days and less dividends, I am definitely ok.

CHAIRMAN’S STATEMENT
Over the past two and a half years, we have executed a series of initiatives to realign our retail network and deepen our market presence. A pivotal move was the transformation of The Hour Glass Japan’s multi-brand boutique in Ginza into a standalone Patek Philippe boutique, a testament to our commitment to elevating the overall retail experience for our clients. This project marks the first of several planned upgrades to the Group’s Patek Philippe network over the next 12 months, each designed to enhance brand visibility and client engagement.
Concurrently, the AUD90 million acquisition of four Rolex boutiques from an Australian counterpart—two in Sydney, one in Melbourne and one in Perth— completed our geographic expansion into all the biggest cities in Australia and New Zealand. This acquisition expands our footprint in Oceania from 3 boutiques in 2019 to 15 boutiques across 6 cities by the end of FY2026. We remain believers in the future potential of this region and have positioned have positioned The Hour Glass to maintain its leadership in this market.
THG AR25: https://links.sgx.com/1.0.0/corporate-an...d585c6cfd4
Kennedy family sells off Rolex dealership to Singapore: https://www.afr.com/companies/retail/ken...625-p5ma97