Allegro acquires Australian resources sector contractor

Financial details were not disclosed. It represents the seventh investment from the private equity firm’s second fund, which closed at A$180 million ($135 million) in 2015 and targets businesses with revenues of more than A$50 million that require investment of A$10-50 million.

The capital will support the integration of new autonomous nodal technology at the company, which focuses on 2D and 3D seismic acquisition services, GPS surveying and geophysical processing. As a result, the company aims to be able to market best-practice subsurface seismic imaging technology services across the resources sector. It is the firm’s second resources deal in six months, following a A$15 million buyout of mining services player JSW Australia.

“It is a sector that currently suits our turnaround investment style as there are opportunities to partner with established companies with strong fundamentals but caught in a deep cyclical down-turn,” Adrian Loader, a managing director at Allegro said in a statement. “Both Terrex and JSW are market leaders who are well positioned for a market recovery.”

Founded in 2004, Allegro focuses on turning around distressed mid-market businesses in Australia and New Zealand, and claims A$700m of funds under management. Other investments by Fund II include Carpet Court NZ, Custom Bus, Pizza Hut Australia, JSW and Healthy Life Group.

The firm secured its first exit last year when Quadrant Private Equity agreed to acquire a majority stake in Great Southern Rail (GSR) in a deal believed to value the company at A$100-200 million.

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• Topics
• Australasia
• Industrials
• Technology
• Buyouts
• Australia
• Allegro Funds
• Commodities