PEP separates Braiform from portfolio company Spotless

As a manufacturing operation, Braiform has a very different business focus to Spotless, which is essentially a service provider. During the buyout negotiations, it was suggested that PEP might seek to divest non-core assets such as Braiform. However, the GP has made no indication that it is looking at such a course of action.

Braiform has been struggling commercially, with EBITDA declining 42.7% to $5.13 million in the six months ended December 2011.

PEP agreed to buy Spotless for A$720 million ($752 million) in April after months of negotiations. The deal was structured as A$2.62 per share in cash plus a special dividend of A$0.04, while investors were also allowed to retain a A$0.05 interim dividend paid out earlier the same month.

The Spotless board initially said it wouldn't entertain offers below A$2.80 per share and denied PEP the opportunity to conduct due diligence.

Spotless is one of three transactions completed by the Australian private equity firm during a 12 month period in which it has deployed A$850 million in equity. PEP recently announced that it would raise up to A$3.5 billion for its fifth buyout fund, including A$2 billion of core equity and a further $1-1.5 billion earmarked for a co-investment pool.

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• Topics
• Portfolio management
• Australasia
• Buyout
• Australia
• buyout
• Pacific Equity Partners