STEALTH GROUP HOLDINGS LTD — M&A Activity 2019

Nov 19, 2019

ASX / MEDIA RELEASE

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ASX CODE : SGI

20 NOVEMBER 2019

STEALTH ACQUIRES PROTECT-A-LOAD

Stealth Global Holdings Ltd (ASX: SGI) (the Company or Stealth) is pleased to announce that it has acquired Protect-ALoad, a privately owned Western Australian based designer and supplier of innovative load restraint products. This includes Protect-A-Load’s premium 18 teeth ergonomic reverse action ratchet tie-downs and patented lockable cargo nets.

Stealth paid a cash purchase price of $258,000 for the Protect-A-Load business and its intellectual property, equating to approximately 2.5x EBIT, plus an additional $270,000 for trading inventory at cost. The business has a contracted sales pipeline of $250,000 and a matching value of future inventory commitments. The acquisition will be funded from existing cash reserves and will be immediately earnings accretive for Stealth.

Protect-A-Load is being integrated into the Heatleys Safety and Industrial Division, and its design registered products complement and extend the existing extensive range of industrial products offered by Heatleys. The innovation demonstrated in the ergonomic ratchet action delivers significant improvements in health and safety, reducing driver and rigger fatigue and shoulder strain.

Stealth Global Managing Director Mike Arnold said the acquisition of Protect-A-Load is consistent with Stealth’s growth strategy where the Company has continued to invest in expanding its proprietary product range building a stronger and more competitive business since listing on the ASX in October 2018. In that time Stealth has acquired Heatleys Safety & Industrial, established an Australia wide distribution footprint through Industrial Supply Group (ISG), a national independent member based distribution group consisting of 27 trade industrial stores, forged a strategic joint venture in the UK with world class brand Bisley Workwear, and entered into a trading partnership with the UK’s largest independent member based distribution groups – Troy (UK) consisting of 420 trade industrial stores throughout the United Kingdom.

“Protect-A-Group is a modest bolt-on acquisition in terms of capital expenditure for Stealth, but it offers substantial growth potential when combined with Stealth’s multinational distribution capability and Heatley’s complementary product range. The Protect-A-Load product range will initially be marketed through Heatleys and will be rapidly rolled out across Australia through the 27 member stores of our ISG distribution group.

“The addition of this product range allows us to expand our offering of high quality, innovative products that add value to our customers, and improve operational health and safety,” said Mr Arnold.

[An Australian Multinational Distribution Group ]

STEALTH GLOBAL HOLDINGS LTD ( ASX: SGI ) ABN: 25 615 518 020

W: stealthgi.com E : investors@stealthgi.com P: +61 8 6465 7800 01 A: 10/43 Cedric Street, Stirling, Western Australia 6021

About Protect-A-Load – Ergonomic Ratchet – www.protectaload.com

The ergonomic reverse action ratchet assembly was purposely created to help assist worker fatigue and muscle strain. The advantages of using the reverse action (Ergo) ratchet straps is that the ratchet allows the load to be tensioned by pulling down on the handle of the ratchet buckle. This is the opposite to standard ratchets where you push the handle up to tighten the strap.

Protect-A-Load engaged Engistics Australia to perform a Webbing Ratchet Pre-Tension Test on the 18 Teeth Ratchet Frame assemblies against the normal 11 teeth frames. Report results proved that the 18 Teeth Ratchet Frame achieved consistently higher pre-tensions (minimum 44%) in the straight-line pull test and required less effort by the operator on both the upward (standard) & downward (Ergo) frames.

ENDS

About Stealth Global Holdings – www.stealthgi.com

Stealth is an Australian multinational distribution group providing workplace consumable products and supply chain solutions to business customers. As a supplier and distributor, we offer a comprehensive assortment of products to support customers with purchasing options and solutions that are essential in the operation of their business.

Stealth’s diversified product portfolio of distributed brands, proprietary brands and bespoke brands are focused on Safety, Industrial and Workplace product categories, sold to the Industrial, Trade and Retail customer markets.

The group serves approximately 3,000 customers, large and small, across a variety of industry sectors including resources, transportation, industrial, manufacturing, engineering, construction, contracting, trade retail, and general workplace environments.

Headquartered in Perth, the group operates in Australia, UK, Africa, Asia, Europe under three competitive brands, Heatleys Safety and Industrial, Industrial Supply Group, and BSA Brands (UK) a joint venture with Bisley Workwear.

For more information please contact

Mike Arnold David Kiggins Steve Suleski Group Managing Director Group CFO FTI Consulting P: +61 (0) 8 6465 7800 P: +61 (0) 8 6465 7800 P: +61 (0) 8 9321 8533

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STEALTH GLOBAL HOLDINGS LTD (ASX: SGI) ABN: 25 615 518 020

W: stealthgi.com E: investors@stealthgi.com P: +61 8 6465 7800 A: 10/43 Cedric Street, Stirling, Western Australia 6021

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