Ebos announced details of a $1.1 billion deal that it said would transform the New Zealand company into a leading transtasman business with revenue of more than $6 billion.
Once the transaction was completed, it would see Ebos become the third largest New Zealand-listed company by revenue, behind only Fonterra and Fletcher Building.
Mr Timms said Symbion was Australia's leading pharmaceutical wholesaler and distributor by revenue and was also a veterinary wholesale provider there. Symbion was a 100% owned subsidiary of The Zuellig Group.
Since 2007, Symbion had achieved compound average revenue growth of 7.7% and earnings growth of 15.2%.
''Ebos and Symbion both have a proven track record of profit growth under the guidance of existing management.
''Ebos believes the increased scale of the group will enhance its ability to provide critical infrastructure required by healthcare and animal care customers and suppliers.''
According to the transaction documents, the acquisition would be highly earnings accretive, increasing full-year 2013 earnings for Ebos from 48c per share (cps) to 62.2cps - an increase of nearly 30%, Mr Timms said.
That excluded any synergies that might be able to be extracted from the combined group over time.
The company had also elected to undertake a taxable bonus issue to shareholders of two-for-53, with a record date of June 6. The issue was designed to make use of imputation credits that would otherwise be lost due to the change in shareholding because of such a large transaction, he said.
''On the face of it, this acquisition looks positive. It will significantly increase the scale of the group, is accretive to earnings, provides opportunities for synergy gains and increases the strategic footprint of the company.''
The deal shifted the mix of revenues significantly towards Australia which would provide growth opportunities, Mr Timms said. However, it would also increase currency risk and would reduce the availability of imputation credits for domestic investors.
The increase in size, index weighting and the ASX listing would also provide additional investor interest, broker coverage and add to the company profile over time.
''We see the entitlement offer as an attractive opportunity at $6.50 and our initial thoughts suggest investors should participate in this offer,'' Mr Timms said.
Ebos shares were yesterday in a trading halt but last traded at $9.90.
Ebos managing director Mark Waller said the deal was a fantastic opportunity.
Ebos had provided health and medical products to New Zealanders for more than 90 years. In the past 12 years, Ebos had successfully made 18 acquisitions in New Zealand and Australia, increasing revenue from $80.8 million in 2000 to $1.43 billion in the year to June 2012.
''The two businesses are totally complementary,'' Mr Waller said.
