• Stealth acquires Australia's largest privately owned hardware buying group HBT for $22m
• Acquisition delivers 1,165 independent stores, $700m purchase volume, and 490 suppliers
• Upgrades FY28 sales target from $300m to >$500m, driven by scale, buying power, and margin expansion

Stealth Group Holdings, a diversified Australian distribution company, has announced the acquisition of Hardware & Building Traders (HBT) - Australia's largest privately owned hardware buying group. The $22m all-cash deal delivers 1,165 independent stores, $700m purchase volume, and 490 suppliers into the Stealth ecosystem. This strategic acquisition strengthens Stealth's wholesale, industrial, and trade distribution model, cementing the company as the leading independent alternative to major industry players like Bunnings and Metcash. The acquisition is expected to drive significant synergies and earnings uplift, with around $8m in annualized savings by FY27 and over $200m in incremental sales by FY28. Key catalysts for growth include leveraging Stealth's scale, assets, and infrastructure to optimize buying terms, rebates, and costs, as well as driving operational efficiencies across freight, supply chain, and cross-selling. Stealth also plans to expand its network from 32 to over 1,200 store locations, further strengthening its position in the $93bn fragmented hardware and industrial market.

Stealth has upgraded its FY28 sales target from $300m to over $500m, driven by the scale, buying power, and margin expansion opportunities from the HBT acquisition. The company expects EBITDA margins in the 8-12% range and NPAT margins of 5-8% in FY28.

Stealth expects steady market conditions and a resilient, diversified business model. The company sees 1H26 as better than 1H25, with the HBT acquisition creating a significant opportunity to drive sustainable sales and earnings growth, leading to a stronger FY27.