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JOHNSONS REPORT
w w w . j o h n s o n s c o r p o r a t e . c o m . a u
Q1
FY19
The Johnsons Report is a regular release designed to provide market intelligence on recently transacted
business sales and acquisitions, involving mid-sized Australian companies that operate in the private sector.
Its purpose is to give the reader insight into broad M&A activity across various industry segments.
AUTOMOTIVE ENGINEERING SERVICES Aug 2018 – Helios Technologies, a Flori-
da-based global manufacturer and leader
in the hydraulics & electronics markets, has
acquired Custom Fluidpower Pty Ltd in a $35
million deal. Headquartered in Newcastle,
Custom Fluidpower is an Australian provider
Kairiki Energy fully acquires Torque Industries to be bought of pump, valve and hydraulic solutions to the
RPM Automotive Group by Coventry Group mining, agricultural, construction, resources
A JOHNSONS CORPORATE SALE and material-handling industries. The CEO of
Deal Size: $23M
Deal Size: AUD $11M Helios described the acquisition as strategi-
Jul 2018 – Investment company Kairiki cally significant, providing a stepping stone
Energy Limited has entered into an agree- Sep 2018 – ASX-listed Coventry Group Ltd, in growing its presence in the Asia-Pacific
ment to acquire 100% of RPM Automotive a leading distributor of industrial products region. Custom Fluidpower’s CEO expressed
Group. RPM is an Australia-based group of throughout Australia and NZ, has entered enthusiasm about joining the Helios team
businesses in the automotive aftermarket. into an agreement to acquire Torque Indus- and working with them to explore new busi-
It offers a nationwide footprint focusing on tries, a South Australia-based diversified en- ness opportunities.
wholesale distribution and retail of tyres, gineering services provider, for AUD 10.5m Sources: Company Announcement
auto parts and accessories and owns a va- in cash. For Coventry, Torque will expand the
riety of well-known and respected brands. Group’s Australian presence and will posi-
The company’s directors have over 25 years’ tion its Cooper Fluid Systems subsidiary as a
experience in the industry. RPM owns sev- leading engineering services business in SA.
eral brands, including The Tyre Factory, Coventry MD and CEO, Robert Bulluss, said:
Revolution Racegear, Wildcat, RW Tyres “Torque Industries provides Coventry Group Calibre Group sells G&S
and Carline Automotive. At completion of with a large and modern South Australian Engineering to DRA Australia
the deal, Kairiki will be renamed RPM Au- based facility that will generate a more diver- Deal Size: Undisclosed
tomotive Group Limited. The deal is worth sified and de-risked revenue stream. Jul 2018 – Engineering and construction
approximately $23 million, comprising cash Sources: Company Announcement management business Calibre Group Limit-
and shares, and is subject to due diligence ed has sold its Queensland-based subsidiary,
by both parties. G&S Engineering Services, to DRA Australia
Sources: Company Announcement Holdings Pty Ltd. DRA is a global engineering
company with long-standing experience in
ERM Power buys Out Performers project delivery and operations. The acqui-
sition fits with DRA’s strategy of expansion
Deal Size: $16M
within the Asia-Pacific region. It will expand
Sep 2018 – Energy solutions company ERM the company’s footprint in Australia and
Northern RV acquired by Power has acquired the Sydney-based inde- open up new long-term opportunities. The
pendent engineering group Out Perform-
Fleetwood Corporation ers for approximately $16 million. The deal
deal will also provide Calibre with increased
working capital and enable it to focus on its
A JOHNSONS CORPORATE SALE includes $12 million immediately and up to core businesses, which include infrastructure
Deal Size: Undisclosed another $4 million earnout over two years. & urban development projects and resourc-
Jul 2018 – Specialised plumbing & electri- Out Performers provides energy efficien- es sector improvements. Financial details of
cal contracting and aftermarket services cy services, including energy-use analysis, the agreement were not disclosed.
provider, Northern RV Group, has been energy advisory, and project delivery and Source: Company Announcement
acquired by ASX-listed Fleetwood Corpo- performance tracking to large energy users.
ration, a provider of accommodation solu- ERM’s CEO described the transaction as an
tions and quality recreational vehicles,
parts and accessories. Fleetwood Managing
excellent fit that would enable the company
to provide a full range of energy supply and
FOOD & BEVERAGE
Director and CEO, Brad Denison, said: “NRV demand services to its clients. The founder
is a logical bolt-on for {our] Camec [subsidi- and the CEO of Out Performers will remain in Industrial Food Services
ary], which will drive improved returns and their current roles following the acquisition.
quality of earnings in that business." NRV Source: Company Announcement
Fuji Oil Holdings fully acquires
extends Camec’s reach into the key Camp- Industrial Food Services
bellfield, Victoria RV manufacturing market, Deal Size: $30M
increasing integration with its important Jul 2018 – Japanese food oil maker Fuji Oil
OEM customers in Melbourne. It also ser- Holdings Inc has announced its acquisition
vices the growing imported caravan market of all the shares of Industrial Food Services
as all imports must be certified to Australian Custom Fluidpower sold to (IFS) Pty Ltd, an industrial-use chocolate
plumbing and electrical standards. Helios Technologies manufacturer based in Melbourne. IFS was
Sources: Johnsons Corporate Deal Size: $35M established in 2002 and has over 40 em-
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JOHNSONS REPORT
w w w . j o h n s o n s c o r p o r a t e . c o m . a u
ployees. It manufactures a range of choc- and to provide growth opportunities for
olate products for industrial use, including both businesses. The deal is worth ap-
chocolate buttons, coatings and fillings. Ac- proximately $11 million in cash for a 100%
quiring the business will enable Fuji Oil to shareholding in Pulford as well as control
expand and develop its chocolate business. People Infrastructure to acquire of the company. It was completed through
Fuji Oil also aims to strengthen IFS through Network Nursing Agency ELGi’s wholly-owned subsidiary Industrial
the application of its specialist fats and oils Deal Size: $8M Air Compressors Pty Ltd Australia.
technology to improve chocolate function- Source: Company Announcement
Aug 2018 – People Infrastructure, an Aus-
ality. Fuji intends to maintain IFS’s existing Industry News
tralian provider of workforce management
management structure after the comple-
systems to the disability care and other
tion of the $30 million deal. sectors, has agreed to acquire Network
Source: Company Announcement Nursing Agency in an $8 million cash deal. LOGISTICS
Network Nursing Agency consists of Net-
work Nursing Agency Pty Ltd and Australian
Healthcare Academy Pty Ltd. The agency
was established in 1997 and provides gen-
eral and specialised nursing services to
ZX Ventures buys BoozeBud private and public clients across Australia.
Deal Size: Undisclosed Australian Healthcare Academy provides Scan Global Logistics Australia
Aug 2018 – ZX Ventures has acquired healthcare training and education. People buys Kestrel Freight & Customs
BoozeBud, an Australian-based online al- Infrastructure’s MD said the acquisition is
cohol retailer, for an undisclosed amount. a strategic fit for the business that will pro- Deal Size: Undisclosed
ZX Ventures is an innovative consum- vide cross-selling benefits and expand the Jul 2018 – Transport and logistics company
er-products business owned by leading company’s offering into nursing. Scan Global Logistics (SGL) Australia has an-
global brewer AB InBev. As part of the Source: Company Announcement nounced its acquisition of Kestrel Freight &
deal, ZX Ventures will commit capital and Customs Pty Ltd for an undisclosed amount.
resources to increase BoozeBud’s prod- SGL provides transportation network ser-
uct range and improve its capabilities and INDUSTRIAL PRODUCTS vices that support all processes in the sup-
e-commerce platform. A BoozeBud founder ply chain. Kestrel is a freight-forwarding
said the company is excited to be work- company that provides logistics support
ing with ZX Ventures to build one of Aus- in the mining, construction, resources and
tralia’s leading online alcohol retail web- Acrow Formwork & Construction telecommunications industries. The two
sites. The head of ZX Ventures described Services to acquire Natform businesses have similar values and a strong
the BoozeBud acquisition as a great fit for customer-centric approach, as well as busi-
Deal Size: $15M
the company’s global e-commerce busi- ness models that complement each other.
Aug 2018 – Natform Pty Limited, an Austra- SGL considers the acquisition of Kestrel to
ness. Post completion of the transaction, lian designer and hirer of screen formwork
BoozeBud will continue to operate as a be a perfect fit that will expand the compa-
systems, has been acquired by Acrow Form- ny’s presence in Australia and strengthen its
stand-alone business. work and Construction Services. Acrow is a
Sources: Industry News position in the market.
formwork and scaffolding provider to the
construction industry. Natform is a sup- Source: Company Announcement
plier of screen-based formwork systems
HEALTH & PHARMA to support high-rise, commercial and civil
construction projects. Acrow’s managing MEDIA & MARKETING
director is looking forward to working with
Natform and growing the revenue of both
businesses. The acquisition will enable
Acrow to provide “one-stop” solutions to
Ausway sold to common customers within the civil and
Star Combo Pharma commercial construction sectors. Total con- Pacific Star Network to purchase
Deal Size: $18M
sideration for the deal is $15 million, com- AFL’s publication business
prising $7 million cash and the rest in shares
Aug 2018 – Australia-based health and Deal Size: $8M
and deferred payments.
beauty products business Star Combo Phar- Source: Company Announcement Jul 2018 – Pacific Star Network Limited has
ma Ltd has agreed to acquire the Australian agreed to acquire the Australian Football
supplements group of companies known League’s (AFL) publication business for ap-
as Ausway. The Ausway group consists of proximately $8 million, consisting of $6 mil-
Ausway Pharmaceutical Pty Ltd, Austoyou lion cash in three instalments and $2 million
Group Pty Limited and Koala Mall Pty Limit- in prepaid advertising. The agreement was
ed and generates revenues in excess of $18 ELGi Equipments acquires stake done through Pacific Star’s wholly-owned
million along with positive earnings. The in Pulford subsidiary Crocmedia Pty Ltd, one of Aus-
group specialises in the supply and distribu- Deal Size: $11M tralia's leaders in content production &
tion of vitamins and dietary supplements in Aug 2018 – Indian air compressor com- publishing. Upon completion of the acquisi-
Australia and overseas, with a strong focus pany ELGi Equipment Ltd has acquired tion, Crocmedia will produce all the weekly
on its e-commerce platform that sells di- F.R. Pulford and Son Pty Limited, a Syd- matchday content including the AFL Record,
rectly into China. Joining the two business- ney-based industrial air compressor and which is the AFL’s official match program
es is expected to create synergies that will gas company, and its subsidiary Advanced and a core part of matchday experience for
underpin growth and a successful future Air Compressors. Pulford is a distributor footy fans. Crocmedia’s CEO said it is a privi-
for Star Combo. The deal is worth $18 mil- of industrial compressors, gas equipment lege to become custodian of the AFL Record
lion and is subject to due diligence and Star and air filtration products. The acquisition and described the acquisition as a strategic
Combo board approval. of Pulford will expand ELGi’s footprint in opportunity to deepen the association be-
Source: Company Announcement Australia. It is also expected to put the tween the two parties.
Industry News company in a strong leadership position Sources: Company Announcement
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JOHNSONS REPORT
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age and risk-management consulting firm ness support, finance and human resource
Arthur J. Gallagher has acquired Super-Ad- services to clients in the private and public
vice in an undisclosed deal. Super-Advice sectors. Will Group will acquire the com-
Amicus Digital purchased by consists of Super-Advice Corporate Ser- pany from its two shareholders, who each
Dentsu Aegis Network vices Pty Ltd and Personal Advice Services hold a 50% stake. The transaction aligns
Pty Ltd, based in Perth and Sydney. Su- with Will Group’s vision of making over-
Deal Size: Undisclosed per-Advice is a leading Australian provider seas HR services one of the its core pillars
Aug 2018 – Amicus Digital, a Sydney-based of employee benefits & superannuation of its business.
tech start-up and certified Salesforce part- consulting and advisory services, and its Source: Industry News
ner, has been fully acquired by London-based acquisition will strengthen Gallagher’s ca-
Dentsu Aegis Network. Dentsu Aegis Network pabilities in these areas and in individual
is subsididary of the Tokyo-based advertising
company Dentsu Inc. Financial terms were
wealth management. The Super-Advice
team will continue to operate as before un-
TECHNOLOGY
not disclosed. Amicus, which was established der Gallagher’s lead. The head of employ-
in 2015, is a cloud consulting and technical ee benefits at Gallagher said the Super-Ad-
services provider with strong expertise in vice team will deepen the company’s value
the Salesforce Marketing Cloud. The com- proposition across Australia.
pany will join Merkle, Dentsu’s data-driven CHG-Meridian buys Equigroup
Source: Company Announcement
performance marketing agency, and will be Deal Size: Undisclosed
rebranded as “Amicus Digital, a Merkle Com- Sep 2018 – CHG-Meridian AG, a technology
pany”. The acquisition aligns with Dentsu’s management and financing company based
expansion goals and is expected to provide in Germany, has acquired Equigroup, a Syd-
the company with strong capabilities in the ney-based equipment financing company.
Salesforce Marketing Cloud. Arthur J. Gallagher acquires Equigroup has offices in Sydney, Auckland,
Source: Company Announcement Milne Alexander Wellington, London and Stockholm. It is a
Deal Size: Undisclosed provider of planning, procurement and dis-
Jul 2018 – Arthur J. Gallagher, insurance and posal services for technology assets. CHG has
PROFESSIONAL SERVICES risk management company based in Illinois, a presence in parts of Europe, North & South
has announced its acquisition of Austra- America and plans for further expansion. Its
lian-based brokerage firm Milne Alexander. purchase of Equigroup is its largest acqui-
Milne Alexander is a retail property/casualty sition to date and first move into Australia
broker with offices in NSW and South Aus- and New Zealand. It aligns with CHG’s inter-
Consolidated Operations Group tralia. The company specialises in the trans- national growth strategy and medium-term
port, manufacturing, aquaculture and coal planning targets. No financial details of the
acquires Centrepoint Finance mining industries. Post acquisition, the Syd- transaction were disclosed.
Deal Size: $10M ney team will relocate to Gallagher’s Sydney Source: Company Announcement
Aug 2018 – Investment company and equip- office while the South Australian team will
ment finance broker Consolidated Opera- remain in place. Milne Alexander has an
tions Group (COG) has entered into an agree- excellent reputation in client services. Gal-
ment to acquire 100% of Centrepoint Finance lagher’s management is positive about the
for total consideration of approximately $10 acquisition and has welcomed the business
million. Centrepoint Finance operates as an into the Gallagher team. Financial details of Velpic bought by
equipment finance broker in several Austra- the deal were not disclosed. Damstra Technology
lian states. The business has a strong man- Source: Company Announcement Deal Size: Undisclosed
agement team and has produced consistent
financial results. The acquisition is an excel- Aug 2018 – Australia-based software com-
lent fit for COG and aligns with its investment pany Damstra Technology has announced
strategies. It is also expected to strengthen its agreement to acquire Velpic, a learn-
the company’s management resources. ing management software (LMS) specialist
based in Perth. Velpic provides a cloud-
Terms of the agreement include $7.6 million Quay Appointments acquired by based platform that helps foster a collabo-
upfront, comprising cash and shares, and an Will Group
additional performance-based earnout of up rative learning culture within organisations,
to $1.9 million over the next two years. Deal Size: $13M making workplace learning easy to deliver
Source: Company Announcement Sep 2018 – Tokyo-based resources compa- as well as creative and fresh. Damstra’s CEO
ny Will Group Inc. has announced it will ac- has expressed delight with the transaction,
quire Australia-based recruitment and staff- saying it will increase the business’s LMS ca-
ing services company Quay Appointments. pability and strengthen its existing suite of
The acquisition, for total consideration of workforce management solutions. The deal
$13 million over two phases, will take place will result in a company name-change for
Arthur J. Gallagher acquires through Will Group’s wholly-owned subsid- Velpic and is subject to approval by Velpic’s
Super-Advice Corporate Services iary and executive recruitment firm Ethos shareholders. Financial terms of the trans-
Deal Size: Undisclosed Beath Chapman Australia Pty Ltd. Quay Ap- action were not disclosed.
Sep 2018 – Illinois-based insurance broker- pointments specialises in providing IT, busi- Source: Company Announcement
If you’re thinking about selling or seeking a merger partner to take your business to the next level, we’d be happy to walk you through some
of the more important considerations. Why not get in touch and have an informal and confidential conversation with one of our Directors?
Sydney Melbourne Brisbane
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T: +61 2 8249 4769 T: +61 3 9225 5411 T: +61 7 3012 6483
E: sydney@johnsonscorporate.com.au E: melbourne@johnsonscorporate.com.au E: brisbane@johnsonscorporate.com.au
If you’re thinking about selling or seeking a merger partner to take your business to the next level, we’d be happy to walk you through some
Johnsons Corporate Pty Ltd ©2018. All Rights Reserved. The information provided above is sourced from 3rd parties. While all efforts are made to ensure the information is accurate, Johnsons
of the
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and does notimportant considerations.
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3rd party have or
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included conversation
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Report is accurate one of our
without Directors?
error.
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