CHAMP exits Australian mining, infrastructure services business

CHAMP bought the business in conjunction with management for an undisclosed sum, supporting a succession planning solution that saw founder Cyril Golding step back. According to AVCJ Research, the private equity firm contributed A$94 million in equity financing for an approximately two thirds stake.

Golding’s financial performance has changed little during the holding period, in Australian dollar terms. Revenue and EBITDA came to A$350 million and $50 million, respectively, in 2008; they are expected to reach A$369 million and $53 million for the 12 months ended June of this year. However, the company is likely to have struggled in between these years because of the commodities slowdown. It posted A$290 million and A$38 million in revenue and EBITDA in 2016.

Established in 1942, the company’s operations fall into three divisions: civil projects such as earthworks, roads, rail, bridges, ports and water infrastructure; mining, where activities range from development to site rehabilitation; and urban projects, which include turnkey solutions for residential and industrial clients in southeast Queensland.

Golding employs approximately 700 people, operates around 370 items of plant and equipment, and has an order book worth A$500 million, of which A$275 million is scheduled for delivery in the 2018 financial year.

“Golding is a business with strong market positions across its operating divisions, underpinned by longstanding tier-one client relationships and an experienced management team. The business is highly complementary to NRW and with a well-recognized brand, represents an attractive platform for our company’s further expansion into the growing east coast civil and infrastructure and coal and metalliferous mining sectors,” Jules Pemberton, CEO of NRW, said in a statement.

NRW claims to be one of Australia’s largest drill and blast companies, offering a range of services to civil construction and mining projects. The company posted A$370.3 million in revenue for the 12 months ended June 2017, up 30% year-on-year, while net profit rose 33% to A$28.5 million over the same period.

CHAMP made the Golding investment through its second fund. The private equity firm is currently deploying its fourth vehicle, which closed earlier this year at A$735 million.

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• Topics
• Australasia
• Industrials
• Trade sale
• Australia
• CHAMP Private Equity
• Exit
• Commodities