Anacacia-owned Big River makes timber bolt-on
Big River Industries, an Australia-based construction materials manufacturer that Anacacia Capital took public three months ago, has bought industry peer Midcoast Timbers.
Big River said in a filing that it would assume control of certain assets and the trading business of Midcoast, which is located on Queensland’s Gold Coast. The acquisition is intended to expand Big River’s branch network in major population centers. Midcoast generated A$8.5 million ($6.7 million) in sales last year.
Anacacia supported a management buyout of Big River in February 2016, with Pantheon participating as a co-investor. They each held a 46.7% stake. The company had previously been owned by the Pidcock family for more than 100 years and established itself as one of Australia’s largest privately-held timber suppliers.
Big River is a leading manufacturer and retailer of softwood and hardwood formply as well as structural plywood products. Its customer base comprises professional builders, formworkers, construction companies, and building contractors operating in the residential, commercial, civil and infrastructure construction markets.
Pro forma sales came to A$195.2 million for the 2016 financial year, up from A$171.9 million in 2015. Net profit rose from A$5.72 million to A$5.92 million over the same period, while EBITDA increased from A$11.1 million to $11.3 million. Big River is forecasting sales and net profit for 2017 of A$201 million and A$5.99 million, respectively.
The company’s IPO in May saw 11.6 million new shares sold for A$1.46 apiece, raising A$16.9 million and giving the company an enterprise value of A$83.2 million. Anacacia and Pantheon did not make a partial exit and their combined shareholding was diluted to 68.4%. Anacacia received A$960,000 in fees for its assistance with the offering. Big River’s stock closed at A$2.05 on August 25.
The private equity firm made the investment from its second fund, which closed at A$150 million in mid-2013.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.