STEALTH GROUP HOLDINGS LTD — Capital/Financing Update 2021

Aug 15, 2021

==> picture [119 x 87] intentionally omitted <==

ASX MEDIA RELEASE

16 August 2021

==> picture [550 x 18] intentionally omitted <==

STEALTH COMPLETES ACQUISITION OF SKIPPER TRANSPORT PARTS

Chris Wharton[AM]

Stealth Global Holdings Ltd (“Stealth” or the “Company”) (ASX: SGI) a broad-line, Australian multinational distributor of industrial maintenance, repair, operating ‘MRO’, safety and workplace products and services, is pleased to announce that the acquisition of Skipper Transport Parts (‘STP’) announced on 4 June 2021, was successfully completed with effect on 15 August 2021. The acquisition includes the formally four COV’s and Coventry’s Automotive Branches in WA regional locations Karratha, Port Hedland, Albany and Esperance which were rebranded in 2016 to Skipper Transport Parts.

STP is a market leading distributor of Industrial Maintenance, Repair, Operating ‘MRO’ supplies and solutions to customer markets of Automotive, Truck & Trailer, Mining, Bus, Agriculture and Industrial in Western Australia and Queensland. Stealth acquired STP, an operating division within Amcap, from a subsidiary of Eagers Automotive Limited [ASX: APE], Australia’s largest automotive retail group.

Key features of the acquisition include:

• STP revenue forecast of ~$18.0m and EBITDA of ~$1.1m within the first 12 months less upfront one-off integration costs.

• Multiple levers for organic growth drive attractive value creation with > $10 million of STP identified revenue synergies driven by cross-selling to more than 5,500 group customers.

• Stealth has a stronger financial profile with upside post the STP acquisition. Stealth annual revenue resulting from the acquisition of STP, and full-year contribution of C&L Tool Centre acquired in December 2020 is expected to be ~$90 million range with strong customer retention, market share growth and favourable economic, industry and market trends offering Stealth opportunities.

Stealth Group Managing Director Mike Arnold said “Stealth’s competitively advantaged business models with diversified end-market exposure is larger, stronger, more relevant following the acquisition of STP.

“In the large, fragmented and highly attractive MRO industry, Stealth is growing an advantaged market position with its broad product range, supply chain infrastructure, physical store network, in-stock product offering, deep supplier relationships & Online webshop channels.

“Maximising the company’s value now and in the future is driven by capitalising on operating leverage from business combinations and through four main customer order channels ‘sales team, in-store, on-site, online’.”

• › Heatleys Safety & Industrial › C&L Tool Centre

• › Skipper Transport Parts

• › Industrial Supply Group

› BSA Brands (UK)

• › www.heatleys.com.au

• › www.cltoolcentre.com.au

Stealth looks forward to publishing its FY2021 performance and FY2022 strategic direction in the next two weeks.

• › www.skippertp.com.au

• › www.isgaus.com.au

• › www.bsabrands.co.uk

For further enquiries:

Mike Arnold Chris Wharton[AM] John Boland Group Managing Director Chairman Group Chief Financial Officer & CEO P: +61 (0) 8 6465 7800 P: +61 (0) 8 6465 7800 P: +61 (0) 8 6465 7800

This announcement was authorised to be given to the ASX by the Board of Directors of Stealth Global Holdings Ltd.

==> picture [537 x 52] intentionally omitted <==

-ENDS-

ASX MEDIA RELEASE (CONT)

==> picture [119 x 86] intentionally omitted <==

About Stealth Global Holdings

Stealth Global Holdings Limited (ASX code: SGI) is a broad-line, Australian multinational distributor of industrial maintenance, repair, operating ‘MRO’, safety and workplace supplies and other related products and services. Headquartered in Perth, Western Australia, it operates a portfolio of distribution businesses that extends across the endto-end supply chain covering Business, Trade, Retail, Service & Specialist Wholesale.

It holds interests in Australia, United Kingdom, Asia, and Africa under five competitive subsidiary brands Heatley’s Safety & Industrial, C&L Tool Centre, Skipper Transport Parts, Industrial Supply Group and BSA Brands (UK) a joint venture with Bisley Workwear.

About Skipper Transport Parts and AMCAP

Skipper Transport Parts specialises in an All Makes, Best Brands approach to supporting truck and trailer customers nationally through their industry recognised workshop parts management solution. Skipper Transport Parts is a parts provider specialising in parts supply and consignment store management. It offers a comprehensive portfolio of brands to help customers evaluate their parts requirements to reduce the total cost of ownership of their equipment, with its branches positioned to provide the best possible support to major logistics fleets, small logistics fleets and independent operators, and automotive fleets. This includes the provision of tailored onsite consignment store solutions to some of the above fleets and operators. Its comprehensive portfolio of brands, products and ranges support truck and trailer, bus, automotive, mining, and industrial vehicles. It has a long track record of serving in regional locations, through Coventry Group, Covs Parts and now Skipper Transport Parts.

Established in 1968, AMCAP is a leading parts distributor in Australia servicing the automotive, commercial and industrial sectors. Its origins were of that which became Automotive Holdings Group (AHG). AHG acquired Coventry Automotive parts in 2011 and renamed it COV’s. AHG sold the COV’s business with 25 metropolitan and some regional locations in 2016, though held onto four branch locations of Albany, Esperance, Karratha, and Port Hedland and moved them under AHG’s subsidiary AMCAP. These regional locations were rebranded Skipper Transport Parts in 2016.

==> picture [152 x 32] intentionally omitted <==

2