Australia’s CHAMP PE secures $206m Southeast Asia deal
CHAMP Private Equity has acquired a significant minority stake in shipping services provider Miclyn Express Offshore (MEO) from Macquarie Capital Group for around A$199 million ($206 million). It represents another step in the Australian GP’s strategy to target companies that offer exposure to Southeast Asia.
CHAMP has agreed to buy 92.4 million ordinary shares - a 33.2% stake in the business - for A$2.15 per share in cash, plus a further A$0.10 per share conditional on certain earnings milestones being achieved. The transaction is expected to close in October.
Macquarie acquired MEO through a $286 million leveraged buyout in 2007. The company trades on the Australian Securities Exchange but is headquartered in Singapore. MEO provides vessels to the offshore oil and gas industry in Southeast Asia, Australia and the Middle East. It has a fleet of more than 120 vessels, including offshore support vessels, crew boats, tugs, barges and coastal survey vessels.
The company also owns a shipyard in Indonesia that constructs vessels for the fleet as well as carrying out conversion, repairs and maintenance work for third-party customers.
Headland Capital Partners, the Hong Kong-based GP that spun out of HSBC Private Equity in 2010, bought a 26.45% stake in MEO for $141 million last September. In November 2011, MEO completed the buyout of Australia-based shipping company Samson Maritime, acquiring the 50% of the business it didn't already own for A$24 million ($25 million).
"The investment in Miclyn is an ideal fit with CHAMP's regional investment strategy and builds on our longstanding track record of investing in service providers to the resources and energy sectors," said Nathaniel Childres, managing director of the private equity firm's Singapore office.
"The company has an impressive growth profile, and we believe it is well positioned to benefit from the growing offshore oil and gas services market across Southeast Asia, Australia and the Middle East."
Earlier this month, CHAMP completed another investment in a Southeast Asia-focused energy business, teaming up with US affiliate Castle Harlan and Lime Rock Partners to commit around $1.05 billion in Dubai-based shallow water drilling services company Shelf Drilling. The newly formed company will purchase drilling equipment for use throughout Southeast Asia, India, West Africa, the Middle East and the Mediterranean.
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