PE-owned APM Human Services set for $743m Australia IPO
APM Human Services, an Australia-based employment services provider with operations in 10 countries, is looking to raise A$986.2 million ($743 million) through a domestic IPO that will facilitate a partial exit for Madison Dearborn Partners (MDP).
The company will sell 277.8 million shares, including 96.7 million new shares, for A$3.55 apiece, according to a prospectus. MDP, which accounts for the bulk of the secondary offering, will realize proceeds of A$515.1 million and reduce its holding from 52.1% to 29.7%. Its remaining position would be worth A$968.4 million based on the target IPO price.
The offering values APM at 12.7x projected pro forma EBITDA for the 2022 financial year.
US-based MDP acquired its majority stake from Quadrant Private Equity in June 2020 for an enterprise value of A$1.6 billion. Quadrant, which had bought APM three years earlier for A$455 million, exited with a 4x multiple and a 61.2% IRR. It supported an expansion in service range and geographic coverage, turning an Australia and New Zealand-focused operation into a global one.
APM has a staff of 7,000 spread across 800 locations in Australia, New Zealand, the UK, the US, Canada, Germany, Switzerland, Spain, Singapore, and South Korea. It started out in 1994 as a disability services provider, running return-to-work programs and helping corporate clients address psychological and physical wellbeing, diabetes prevention, and pain management in the workforce.
Health and wellbeing is now one of four divisions, alongside employment services, communities and assessment, which conducts disability support assessment and runs community-based programs, and disability and aged care support services.
Employment services is the largest division, accounting for nearly three-quarters of revenue. APM connects jobseekers with vacant positions. Other services include training, job search assistance, and interview preparation for jobseekers, and employee retention tools, workplace health, safety and inclusion programs, and access to wage subsidies for employers.
Revenue reached A$1.02 billion for the 12 months ended June 2021, up from A$796.7 million a year earlier. Australia is responsible for 52.2% of revenue, with 26.8% coming from Europe and 12.5% from North America. Over the same period, EBITDA rose from A$148.4 million to A$233.8 million and net profit increased from A$21 million to A$77.8 million.
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.