The strong run of the Seven Group Holdings Ltd (ASX: SVW) share price continued today.
In late trade the diversified operating and investment company's shares are up almost 10% to $12.75.
This brought the year-to-date return for its shares to over 56%.
Why did its shares jump higher today?
This morning the company announced the acquisition of the remaining 53.3% interest in Coates Hire that it did not already own.
Seven has paid $517 million for the equipment hire company.
But the money appears to be well spent. Management expects the acquisition to increase pro-forma FY 2017 EBITDA from $328 million to $611 million and be 15% accretive to FY 2017's underlying earnings per share.
According to the release, the acquisition will be funded via existing debt facilities and available cash. This includes the proceeds from the sale of WesTrac China.
