The Australian Financial review reports Dixon Hospitality is one step closer to its rumoured IPO, with another “chunky acquisition” expected to be announced soon.
The operation, fronted by father and son team Bruce and Michael Dixon, has been on an aggressive acquisition path since its inception in 2012. Starting as a charter cruise business, it has rocketed from zero to 28 pubs in just four years.
Dixon Hospitality Group (DHG) is championing the specific business model of leasehold food-based pubs, with no gaming.
Late last year Michael Dixon told The Australian they had plans for a $300m Initial Public Offering (IPO) by the end of 2016 and expect to operate around 30 pubs by that stage.
“The size will all depend on a couple of transactions we are targeting over the next six to 12 months. It will be in the vicinity (of $300m) or it could be a bit more,” said Michael Dixon.
“We are looking to purchase some more within Victoria but also go further up the eastern seaboard, in NSW and Queensland.”
Yesterday the AFR reported DHG is close to “at least one more chunky acquisition”, with due diligence almost done and an announcement expected in May.
There are a number of parties rumoured to be interested in getting the jump on a public offering –including, ironically, interests of gaming magnate James Packer, but also Collingwood president Eddie McGuire – although Dixon has previously conceded it is not a tried and true proposition.
“It is something that hasn’t been done before. It would be a new player in the (ASX) in that it’s strictly leasehold,” he said.
If a public listing eventuates, former Spotless chief and DHG majority shareholder Bruce Dixon will be chief executive, and former Macquarie Group chairman Kevin McCann will be chairman of the new entity.
PubTIC was unable to secure reply from DHG prior to publication.