SPP’s results for FY18 revealed a good performance from its Irish business, BWG. We assess the impact that BWG’s bolt-on acquisitions may have had on the improved performance of this
division. We argue that the purchase price of the minority stake should be adjusted for their share of the additional capital deployed in the bolt-on acquisitions. We think the BWG deal structure fosters an incentive that could present some risk to SPP in later periods.
