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Mitre 10 investors approve majority ownership by Andrew Reitzer's Metcash

CONSUMER goods distributor Metcash today said that 98 per cent of stakeholders in unlisted hardware wholesaler Mitre 10 Group had voted to approve its taking a majority ownership of the hardware business for about $55 million.

Metcash said in a statement that, while the schemes of arrangement to effect the deal were still subject to court approval, the transaction was expected to be complete by March 31.

Andrew Reitzer, the Metcash chief executive, said Mitre 10 will “remain a focused wholesaler and not compete with its customers through the operation of retail stores”.

Under the deal Metcash will have the right to acquire the remaining 49.9% of the business in either 2012 or 2013 at an amount based on an agreed multiple of its earnings.