RE:Contra guys article"They estimated revenue would climb 35 per cent while significant earnings-per-share accretion would follow within a year after the deal’s close."
Management was low balling the revenue growth at 35% given
1) ACE wasn't even in Quebec
2) High growth ACE LTM ending March 31 revenues were $57M while No growth Corby nine months ending March 31 revenues were $163M.
Also much of the EPS growth will be from leveraging the balance sheet with $120M of cheap debt.
My concern is a slowdown in the RTD catagory as I had forecasted 20% growth in Corby RTD catagory over next 3 years. In the nine-months ended March 31, 2024, the Canadian RTD category retail sales volume only grew 2% while retail value grew 7% when compared to the nine-month period in the prior year.