CHAMP Private Equity

Bradken Pty Limited, founded in the 1920’s is a leading Australian manufacturer of steel consumables and capital equipment and associated maintenance services for the mining, mineral processing, industrial and rail sectors, with annual sales of more than A$500 million. Bradken enjoys a strong market position in many of the segments in which it operates, a position underpinned by Bradken's strong product development capability, and long term license agreements allowing it access to market leading technology. Bradken operates thirteen manufacturing facilities across Australia and New Zealand.

In December 2001, CHAMP partnered with ESCO Corporation to acquire Bradken A$185.5 million from the Smorgon Steel group, which viewed the company as non core. By refocusing it as a stand-alone entity, giving management the opportunity for significant equity participation, and funding various compelling capital projects, CHAMP reinvigorated Bradken and built on its market position and world class technology.

During CHAMP’s three year ownership, approximately A$25 million of new capital expenditure was invested for capturing growth opportunities and cost reductions. This capital was deployed by the Bradken management team to improve the efficiencies of its foundries and position the company for growth. In this time Bradken’s EBITDA grew over 60% from approximately $30 million per annum to $50 million per annum at the time of its successful public listing in August 2004. CHAMP realised greater than three times its investment cost, with an IRR of 49% and retains a 10.1% stake in Bradken.