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eCargo Holdings nabs 85% of Chinese export business
Thomson Geer has advised eCargo Holdings on its purchase of Metcash’s China export business.
Emma Musgrave
Firm: Thomson Geer (eCargo Holdings Limited)
Value: According to a statement from Thomson Geer, the consideration paid for the acquisition was $2.5 million plus 85 per cent of the net asset value of the business of $5.8 million and deferred compensation of up to $3.5 million funded by a combination of ECG’s existing cash reserves and available facility.
Area: M&A
Key players: The Thomson Geer team comprised partner Matt Reynolds and senior associate Dan Stumm.
Deal significance: ECG is described as an eCommerce, technology and specialist execution group of companies, operating in both China and Australia. It acts as a one-stop enabling partner for designer fashion, branded apparel and retail companies seeking to sell their products online in China by providing integrated online and offline technology and supply chain solutions, Thomson Geer explained.
Meanwhile, Metcash is touted as Australia’s leading wholesaler and distributor. It supplies and supports more than 10,000 independent retailers across the food, liquor and hardware sectors. Some of its retail customers include IGA, Mitre 10 and Cellarbrations, the firm said.
The 85 per cent acquisition by ECG includes Metcash subsidiary, Metcash Asia Limited, a wholly-owned foreign enterprise in China.
“The acquisition enables ECG to create a one-stop offering for businesses intent on capturing the attention of China’s growing consumer market – both online and via traditional bricks and mortar stores,” according to the Thomson Geer statement.
Partner Matt Reynolds added: “This was an interesting cross-border transaction for our team that presented a transformational opportunity for our client, ECG, to expand its operations in mainland China under a continuing arrangement with Metcash.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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