CHAMP Private Equity (CHAMP) announced today that International Energy Services Pty Ltd, a company controlled by CHAMP and its affiliates, as completed the acquisition of the businesses and assets of the Energy Services subsidiary of Ion, Ltd. The transaction was valued at approximately A$144 million and was funded through a combination of equity, vendor finance, and senior and subordinated debt facilities underwritten by Westpac Banking Corporation.

International Energy Services (IES) consists of two principal businesses, Cootes Transport Group and Liquip. The Cootes Transport Group plays a leading role in Australia’s energy supply chain, distributing oil, petrol, bitumen, liquefied petroleum gas (LPG) and hazardous chemicals from terminals to regional depots, service stations and industry. Liquip is one of the world’s largest manufacturers of specialty liquid-handling equipment and the only player providing a total range of equipment primarily for the oil and gas storage, transport and processing industry. Both businesses are known for their high standards of customer service and their strong safety record for handling and transporting hazardous materials.

Nat Childres, a CHAMP director, said that the Energy Services division’s commitment to safety and customer service would remain the focus for the business going forward. “The IES business plays a critical role in ensuring the safe, timely and cost effective transportation of Australia’s petrol and gas to market. With about 40% of Australia’s petrol and 90% of Australia’s LPG transported by IES vehicles, the Company is a vital component of the nation’s energy infrastructure. CHAMP is very pleased to be partnering with an exceptional management team to build on the company’s market leading position and outstanding reputation” Mr. Childres said. “We are also confident that the Liquip business will continue to lead its sector in Australia and will continue to grow its exports to markets in Asia and beyond.”

Vin Stenta, who has been the general manager of the Energy Services division since 2001 and with the company for 7 years, will continue as managing director of International Energy Services. He expressed enthusiasm over the new ownership. "CHAMP has an outstanding track record of providing strong support for management and enabling growth. With CHAMP’s support we look forward to driving Liquip’s development of new products and expansion into new markets, while ensuring that Cootes is able to maintain its exceptional levels of customer service to the major oil and gas companies in Australia whom I would like to thank for their continued support during recent months. This new entity also provides security for our employees. The future, indeed, looks bright."

Ion, a diversified automotive supplier and the Energy Services division’s former parent, was placed in the hands of a voluntary administrator in early December after its banks withdrew its main lending facility. CHAMP Private Equity and its affiliate CHAMP Ventures together form Australia’s largest independent private equity firm managing and advising approximately A$750m in private equity capital available for LBO/MBOs, growth and development opportunities and venture capital in Australia, New Zealand and the broader Australasian region. CHAMP was formed in 2000 by Bill Ferris, Joe Skrzynski and Castle Harlan, Inc. a leading New York based private equity firm.

The purchase of the Energy Services business from Ion is the seventh investment for the CHAMP I funds, more than 75 percent of which have now been committed. CHAMP’s other portfolio companies include Austar United Communications Limited, Australia’s leading regional subscription TV company; Australian Pacific Paper Products, Australia’s second largest baby healthcare products manufacturer and Sheridan International, Australia’s leading participant in the bed and bath textile market.

For more information contact:
Nat Childres, Director
CHAMP Private Equity
Phone: (02) 8248-8870