Stealth Group Holdings Ltd (ASX: SGI), a diversified multi-channel distribution company operating as a wholesaler, distributor, and retailer supplying products and solutions to businesses, trade professionals, and retail consumers across Australia, has announced an agreement to acquire 100% of Hardware & Building Traders Pty Ltd (HBT), Australia’s largest privately owned national buying group for the hardware and industrial sector. The headline purchase price is $22 million in an all-cash transaction, with the initial payment funded through an extension of Stealth’s bank-debt facilities. Completion is scheduled for 10 November 2025.
The acquisition is described as a transformational move, positioning Stealth as the market-leading alternative to major players like Wesfarmers and Metcash within the $93 billion hardware and industrial market. According to Stealth, it creates a high-barrier, difficult-to-replicate national distribution platform, adding approximately 1,165 independent retailers/stores, ~$700 million in annual purchases, and ~490 supplier partnerships.
Stealth anticipates extensive growth catalysts and synergies from the acquisition. The company’s FY25 investments in exclusive/private-label products, tool-hire services, and online channels will now be available to around 1,200 stores nationwide. The company expects approximately $8 million in annual profit synergies by FY27 and more than $200 million in incremental sales in FY28. The company is touting the acquisition as immediately accretive and cash-generative.
Driven by the significantly expanded scale, buying power, sales, and margin growth, Stealth has upgraded its FY28 earnings guidance. The company now projects sales exceeding $500 million (up from $300 million), an EBITDA margin between 8–12% (up from 8%), and an NPAT margin between 5–8% (up from 5%).
