Project Cusack: Keyless Locker Rental and Sales Business
Opportunity Overview
- FYJune’20F: Sales AUD$2.4m & EBITDA: AUD$530,000, margin 21%;
- designs, procured, assembles, distributes, installs and services keyless storage locker systems.
Cusack works globally with market leading suppliers in order to design and supply lockers
- different locker solutions include; storage lockers, containerised lockers, parcel lockers and refrigerated lockers
- Australian manufacture of terminal and lockers which differentiates itself from all other Australian locker providers relying on China manufactured terminal and lockers
Investment Thesis
Producing high-quality products trusted by customers
- Cusack has leading proprietary technology in the current market to gain an advantage over its competitors
- many suppliers offer only a standardised Chinese imported product, limited selection options the cabinet material and less reliable hardware and lock and software which leads to greater failures
- the opportunity to build a reliable locker system with easy to hire locker and reopens with further enhanced systems allowing for smart-phone connectivity and capabilities
Strategic relationships with leading global suppliers and customers
- Cusack has secured customers in Australia and overseas by word of mouth and existing customer relationships without the use of advertising or a website
- Cusack continues its product development to meet a growing worldwide demand from their consumers, investing funds into production and R&D in order to broaden its product offering
- development of its own specialised locker product to capitalise on this global partnership with Customer ‘X’, current market leader in refrigerated lockers
Strong market opportunity for Cusack in Theme Park Industry
- Cusack identifies opportunities within Australia in excess of 10,000 doors with an initial 3,000 lockers targeted within the next 12-18 months
- attendance in top 20 theme park organisations globally for 2017 recorded an 8.7% growth with total attendance greater than 475 million people
- growth in the global theme park market of 8.6% in top parks presents opportunities for rental lockers in the tens of thousands
Transaction Dynamics
- debt facility to support the rental locker business rollout
- equipment finance type facility to fund rental locker growth
Process
- execution of NDA from approved parties will lead to the release of the transaction IM
- Indicative non binding offers
- due diligence
- final offer and contract negotiations