Dusk Group Limited (ASX:DSK) agreed to acquire Eroma Group from Shane McGrath and other private investors for an enterprise value of AUD 28 million on December 17, 2021. Dusk will acquire 100% of Eroma on cash and debt free basis. Consideration will be paid as AUD 15 million in cash and AUD 13 million in Dusk's ordinary stock. Eroma group is owned 55% by founder and Chief Executive Officer, Shane McGrath and rest by other private investors. The deal will be funded from debt of AUD 10 million and from existing cash reserves of AUD 7 million. Valuation of Eroma equates to an EV Financial Year 2021, EBIT multiple of 5x. Eroma reported approximately AUD 30.1 million in revenues, AUD 5.6 million in EBIT and AUD 5.8 million in EBITDA for the financial year ended June 30, 2021. Eroma will continue to be led by Shane McGrath as chief executive officer, Shane will also become a significant shareholder in Dusk Group. The transaction is expected to close on or around January 31, 2022. The acquisition is expected to be accretive to Dusk's earnings from year one. Herbert Smith Freehills LLP acted as legal advisor led by Peter Dunne and his team including Wendy Tian, Taseen Rafi, and Jennifer Wu in the transaction.

Dusk Group Limited (ASX:DSK) cancelled the acquisition of Eroma Group from Shane McGrath and other private investors on March 3, 2022.