CHAMP Funds Sell Penrice
Media Release
CHAMP FUNDS SELL PENRICE FOR $110 MILLION IN BUYOUT BY QUADRANT CAPITAL AND COLONIAL FIRST STATE
A joint venture between Quadrant Capital, an affiliate of Westpac Private Equity Pty Limited and Colonial First State Private Equity Limited today announced it had completed the $110 million purchase of Penrice Soda Products Pty. Ltd. (“Penrice”) from the CHAMP I Funds, which are managed and advised by CHAMP.
Quadrant Capital and funds associated with Colonial First State Private Equity have collectively provided the majority of the equity for the transaction, the balance from members of the Penrice management team, led by CEO David Reid.
Adelaide based Penrice has annual revenue of approximately $130 million and employs approximately 240 people, principally in South Australia. The company was founded in 1940 and is the only manufacturer in Australia of sodium carbonate (soda ash) and sodium bicarbonate (baking soda). Soda ash is a key ingredient in manufacturing glass and has various other industrial applications. Baking soda has a multitude of commercial, pharmaceutical and industrial applications and is sold in Australia and throughout Asia. Penrice also produces salt and mines limestone, two key materials in the manufacture of soda ash and baking soda, which are also sold directly in the Australian market, and have represented areas of significant growth for the company under CHAMP’s ownership.
Managing Director of Quadrant Capital Fund, Mr Chris Hadley, said today, “We are pleased to be backing such a high quality management team led by the Penrice CEO, David Reid. The management team have shown their commitment by reinvesting in the secondary buyout.”
Investment Director of Colonial First State Private Equity, Rajeev Dhawan, commented that “The consortium was attracted to Penrice because of its strong market position, track record of profitable growth and the opportunities for further growth, particularly in the area of salt and sodium bicarbonate production.”
Penrice CEO, Mr David Reid, commented, “More than 70% of Penrice employees are shareholders in the company and will profit from the returns generated by this transaction. Penrice has benefited from the close working relationship with CHAMP and we look forward to realising our future potential with Quadrant and Colonial First State.”
Investment Director of CHAMP, Mr Paul Wilson, said that “We have been very pleased with Penrice’s development since our investment in 2001, particularly in increases in sales of sodium bicarbonate to export markets and of salt in Australia, and improvements in waste recovery. We wish Quadrant Capital Fund and Colonial First State all the best in working with David Reid and his management team to further grow the business.”
National Australia Bank have
underwritten the finance for this transaction.
CHAMP was advised by Credit Suisse First Boston.
For further information please contact:
Chris Hadley, Managing Director,
Quadrant Capital Fund 02 9221 3044
Rajeev Dhawan, Investment Director, Colonial First State 02 8224 6415
David Reid, CEO, Penrice 08 8402 7242
Paul Wilson, Director, CHAMP 02 8248 8817
Darren Smorgon, Associate, CHAMP PTY Limited 02 8248 8805
About CHAMP
CHAMP is the largest independent buyout funds manager in Australia. With A$550
million in funds under management and strong international partners, CHAMP
plays a vital role in providing capital for Australasian companies undergoing
ownership change. The firm brings together the respective corporate histories
of Australian Mezzanine Investments Pty Limited in Australia and Castle Harlan,
Inc. in the USA, both of which were founded in 1987.
About Quadrant
Quadrant Capital is a buyout and expansion fund with $250 million funds under
management. Since 1996 the fund has invested in 32 transactions in Australia
and New Zealand. The fund is managed by Westpac Private Equity Pty Ltd a subsidiary
of Westpac bank.
About Colonial First State
Colonial First State Private Equity is committed to funding growth companies
throughout Australia and New Zealand with over $250 million funds under management.
Since 1984, Colonial First State Private Equity has invested in over 75 companies,
and assisted them with the implementation of their growth plans.
ENDS
