KKR to buy majority stake in Australia's Dixon Hospitality
KKR has agreed to acquire a majority interest in Dixon Hospitality, which operates a portfolio of more than 40 food and beverage outlets across major cities in Australia. The capital will come from the GP's third pan-Asian fund, which closed earlier this month.
The size of the transaction was not disclosed, but The Australian reported it as approximately A$190 million ($146 million). Dixon Hospitality was previously said to be targeting a public listing at a value of A$186 million, but the IPO plan was abandoned and the company turned instead to private equity options.
Dixon’s venues are primarily located in Melbourne, Sydney and Brisbane. Most of them operate as a standalone pub, bar or restaurant with their own defined brand, service proposition, and target clientele. There is a focus on premium food and beverage offerings, as well as function and event facilities.
The company was established in 2012 by Bruce and Michael Dixon. Bruce Dixon, who is the executive chairman, previously served as CEO of Spotless Group before and during Pacific Equity Partners’ ownership. He will remain involved after the deal closes, as will Paul Waterson, CEO of Dixon Hospitality.
“We are excited to work together with Dixon Hospitality’s experienced team. This exemplifies our focus on partnering with proven entrepreneurs to help create an exciting future for the business,” said Scott Bookmyer, head of KKR Australia, in a statement.
The private equity firm has deployed more than A$3 billion in Australia across private equity, credit, energy and resources, and real estate. Current private equity investments include Latitude Financial Services – formerly GE Capital's consumer lending unit in Australia and New Zealand – sandalwood producer Santanol, and agribusiness specialist Sundrop Farms.
At $9.3 billion, KKR Asian Fund III is the largest pool of private equity capital ever raised for deployment on a pan-Asian basis. Within days of announcing the final close, KKR offered to buy Vocus Group, one of Australia’s leading high-speed broadband internet providers, in a deal worth around A$2.1 billion.
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