Vinyl Group (ASX:VNL) to Acquire Concrete Playground
Acquisition Details
Vinyl Group (ASX: VNL) has entered a binding Heads of Agreement to acquire Concrete Playground Pty Ltd for a total consideration of $5 million, consisting of $3.5 million in cash and $1.5 million in shares. The acquisition is expected to positively impact Vinyl Group’s earnings with a forecast pro-forma contribution of at least $1.5 million in EBITDA and over $4 million in unaudited revenues for the calendar year 2024.
Operational Impact
The acquisition will allow Vinyl Group to accelerate its timeline for achieving positive cash flow by six months. Concrete Playground, established in 2009, functions as a leading digital city guide in major Australian and New Zealand cities, enhancing Vinyl Group’s commercial reach and diversification. The integration of Concrete Playground into Vinyl Group’s media division is anticipated to generate operational efficiencies.
Comments from Executives
Vinyl Group CEO, Josh Simons, stated, “We are looking forward to working with Rich and the Concrete Playground team to complete this acquisition in early 2025. Operationally, this acquisition will be significant for Vinyl Group — it would not only elevate our capabilities but also fast-track our path to sustained profitability.” Rich Fogarty, Founder & CEO of Concrete Playground, commented on the transition, expressing pride in the achievements of his team and confidence in Vinyl Group’s vision for future growth.
Next Steps
Completion of the acquisition is subject to customary conditions, including entering into a Share Sale Agreement and obtaining necessary approvals. The deal is expected to be finalized by 28 February 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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