Elders Ltd has released more information on its stunning takeover of the prominent south-western Victorian real estate and livestock agency business Charles Stewart Group. The company expects its new business to earn about $5 million annualised EBIT (before interest and taxes) in its first year. Charles Stewart and Co. has confirmed it is retaining its livestock lending business with its sale to Elders Ltd as Stewarts Livestock Finance Pty Ltd. The deal was finalised this week. Charles Stewart was established in 1917 and has been managed by four generations of the Stewart family over its 106-year history. It has a team of more than 60 people across Colac, Ballarat, Camperdown, Geelong, Hamilton and Warrnambool. Elders chief executive Mark Allison said Elders would continue to operate Charles Stewart under its existing brand and current team, including all key management. In a statement to shareholders this week, Mr Allison said in the past three years the Charles Stewart Group transacted an annual average of 82,000 head of agency cattle, 270,000 head of agency sheep and more than $430 million in real estate agency turnover. As part of the purchase, Elders also acquired Charles Stewart's rent roll of more than 900 properties. Mr Allison said the $5 million in earnings forecast was calculated "under current livestock market conditions". He said the purchase price remained confidential. "This is an exciting opportunity to strengthen Elders' presence in Victoria with a well-respected business," he said. "Not only does it fill a key strategic gap for Elders, it also allows for further growth opportunities in the future."
