Creditors take control of PE-owned Gerard Lighting

CHAMP took the business private four-and-a-half years ago in a deal worth A$186 million ($140 million) with a view to leveraging the structural shift in the industry towards LED and energy efficient solutions. However, the company has been hit by a general decline in retail businesses across Australia.

BCC gained exposure to Gerard in 2015 through its purchase of GE Capital’s commercial lending and leasing portfolios in Australia and New Zealand. According to The Australian Financial Review, the firm has picked up additional pieces of debt since then. Both BCC and Investec will each contribute A$15 million in new equity as part of the debt-for-equity swap.

Gerard said the acquisition will ensure a stable future for the business, reducing debt levels and enabling the redeployment of capital towards growth opportunities. “We’ve made significant improvements over the past few years to get the business in the right shape, including investing in our people, systems, logistics and digital capability to put ourselves ahead of the curve and keep delivering for our customers across Australia and New Zealand,” Les Patterson, Gerard’s CEO, said.

Founded in 1920 and majority-owned by the Gerard family until CHAMP’s buyout, Gerard Lighting supplies lighting solutions for the commercial, trade and residential markets, as well as for construction and infrastructure projects. Its brands include Pierlite, Sylvania, Crompton, and Diginet. Gerard claims to be more than twice the size of its nearest competitor in Australia and New Zealand.

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• Topics
• Australasia
• Consumer
• Write-off
• Buyouts
• Restructuring
• Australia
• CHAMP Private Equity
• Bain Capital Asia