Apax buys Australia automotive auctions platform
Apax Partners has acquired a majority position in Australian vehicles and industrial equipment marketplace Pickles Auctions.
Apax is investing via its 10th global flagship fund, a dual-currency US dollar and euro vehicle that closed early last year on USD 11bn.
The size of the transaction, which is expected to close within the year, was not disclosed. Apax Global Alpha, a listed vehicle that made a USD 450m commitment to Fund X, said in a filing that its look-through exposure to Pickles would be around EUR 11m (USD 11.1m).
Pickles has been privately owned since 1964, but its family owners believe the business is now at an inflection point and that the time is right to bring in outside investment to fuel growth. The Pickles family will retain a minority interest and the current executive leadership team will remain in place.
“Having dealt with multiple potential buyers over the years, it became clear to us that Apax is a strong natural fit for Pickles,” chairman Tim Pickles said in a statement. “They bring global experience of digital marketplaces, the capacity to drive us forward, and they share our dedication to providing our clients with an unparalleled level of service.”
The Pickles platform organises about 150 auctions a month at 27 locations across Australia for clients such as the national government, state governments, local councils, fleet and lease companies, insurance companies, financial institutions, banks, and not-for-profit organisations. In the last financial year, it sold more than 228,000 vehicles and around AUD 460m (USD 320m) in transport and construction equipment.
Apax called Pickles a clear leader across all of its verticals, with a strong reputation for customer success and long history of consistent growth. The investor was impressed by the company's continued evolution despite its leadership position. It expects to leverage its experience with New Zealand e-commerce platform Trade Me, which it acquired in late 2018 for about USD 1.9bn.
Additional experience with online marketplace businesses across Apax funds includes KAR Global and Boats Group in the US, Auto Trader in the UK, Trader Corporation in Canada and Idealista in Spain. “They bring global experience of digital marketplaces and are keen to keep investing in our business beyond the initial purchase,” Pickles CEO Bruce Maclennan added.
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