The business will be sold to a group within LBM management team for a cash consideration of around $7.3 million, according to a Countplus statement on the ASX.
“The Countplus board had formed the view that the LBM Group would not meet the company’s long-term growth plans and initiated discussions with the LBM Group’s new management team to sell the business to them,” the statement read.
The sale is expected to reduce Countplus’ earnings per share in 2014 by three per cent, including an “immaterial” impairment loss, and “is not expected to materially impact the Group’s previously announced earnings guidance,” Countplus said.
“The sale will enable Countplus to redeploy the capital to acquisition opportunities as they arise, which meet our strategic objectives and future growth plans,” the statement said.
Proceeds of the sale will be used to reduce the company’s debt.
