Also on Masters...
Di Pilla consortium in play for Masters
Veteran banker David Di Pilla is understood to be leading a consortium of wealthy families to buy Woolworths’ Masters hardware portfolio.
Mr Di Pilla, who is married to a member of Sydney’s wealthy Salteri family, is believed to have injected some of his personal wealth in to the transaction, as have Di Pilla’s parents-in-law, Mary and Alex Shaw.
The planned acquisition of the Masters business has been backed by two other unnamed high net worth families.
The consortium includes investors Greg Hayes and legendary banker Matthew Grounds, who heads up UBS’s operations in Australia. Chemist Warehouse and Spotlight are also part of the group.
It is understood the private consortium has already lined up a follow-on deal with Masters’ arch rival, Bunnings, with between 10 and 20 of the large format stores likely to be leased to the hardware retailer. A number of the properties have also been earmarked for redevelopment.
The price of the transaction, which is expected to be unveiled shortly, is yet to be disclosed.
Hayes and Grounds are also investors in the Aurrum aged care venture, which Di Pilla founded two years ago. The business now operates 7 aged care facilities in NSW and Victoria and owns three greenfields sites.
The developments come after
DataRoom exclusively revealed that Metcash was finalising contracts Tuesday night to buy Home Time and Hardware from Woolworths, with the price expected to be between $150m and $200m. Metcash has
since announced to the market that it is purchasing the hardware chain from Woolworths for $165m.
It is understood that Anchorage also bid close to the same valuation as Metcash and raises questions in some quarters about the synergy value Metcash will extract from the deal.
Following that report, Woolworths shares were placed in a trading halt Wednesday morning, pending an announcement on its home improvement joint venture business, which includes Masters and HTH.
Sources said Wednesday morning that with HTH being immaterial to Woolworths, a deal involving Blackstone could also be announced.
— Gretchen Friemann and Bridget Carter
(20min delay)
