Australia’s Pemba to exit Heavy Maintenance Group
Pemba Capital Partners – an Australian middle-market GP formerly known as RMB Capital Partners – has agreed to sell heavy equipment specialist Heavy Maintenance Group (HMG) to Malaysia’s Sime Darby for A$58 million ($41 million).
HMG's history dates back to 1959 with a small surface finishing shop under the name Hardchrome. The company now claims to be a global leader in the design, manufacture and refurbishment of components for heavy equipment. Typical services include the refurbishment of hydraulic cylinders, precision parts engineering, and protective surface finishing coating. It has customers across Australia and Asia Pacific in areas such as mining, oil and gas, agriculture, shipping, construction, and defense.
According to AVCJ Research, RMB formed the Brisbane-based company in 2007 through the acquisition of three mining services businesses: Hardchrome, Westhill Engineering, and ABC Heavy Engineering. Its initial investment was A$11.5 million. The private equity firm currently holds a 92.5% stake in the HMG.
Sime Darby is a trading conglomerate with interests in construction equipment, automotive assembly, logistics, and healthcare. It employees more than 20,000 people across 18 countries and territories in Asia Pacific, generating MYR33.8 billion ($8 billion) in revenue last year. The company said in a statement that the acquisition of HMG would boost the geographic coverage of its industrials division.
Formed in 1998, Pemba specializes in buy and build partnerships with the owners and managers of private businesses. HarbourVest Partners completed a fund restructuring in 2016 and made an anchor LP commitment to Pemba’s latest fund, which reportedly closed at A$650 million the same year.
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