Allegro Funds leads MBO of Australia’s Hastie Services

The buyout, realized alongside Hastie Services CEO, Roger Jowett, sees the mid-market investor pick up all three Hastie Services group companies: Hastie Services and Spectrum Fire & Security in Australia - each of which had receivers and managers appointed to them back in May - and Cowley Services in New Zealand.

The new holding company for the three units is TSC Group Holdings, which will be headed up by Jowett.

"Hastie Services has long had good people, strong customer and supplier networks and a competitive market presence. It now has the benefit of stable financial backing and focused management," commented Allegro Managing Director Chester Moynihan, who has been appointed chairman of the newco. "We look forward to working with the new management team to see the group regain a leading position in the industrial services market."

Engineering company Hastie Group entered into voluntary administration earlier this year after recapitalization talks failed due to "accounting irregularities." This caused a profits charge of A$20 million ($19.7 million) and the subsequent resignation of two non-executive directors.

The deal will help to pay down some of the debt - thought to be around A$460 million - that creditors including Australia & New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank and Westpac are owed.

Lazard invested in Hastie's last June as part of an earlier recapitalization effort, taking a stake of up to 25% for A$170 million.

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• Topics
• Australasia
• Buyouts
• Industrials
• buyout
• Australia