Australia’s Advent sees 2.5x return on Locker investment

Locker produces perforated and expanded metal products used in industrial flooring and handrails, as well as screening devices for the industrial and mining sectors. The company, which was founded in 1956, has more than 300 employees across five manufacturing locations in Australia, New Zealand, India and China. Annual sales are approximately A$80 million.

Following Advent's investment in 2006, Locker has introduced operational programs designed to optimize manufacturing, warehousing, procurement and IT operations, and also built out its sales and marketing team so as to enter new industry segments.

"We have grown the business into a market leader in Australia and Asia by strengthening its manufacturing footprint, investing heavily in sales and operations, along with expanding operations offshore into India and China," said Rupert Harrington, managing director of Advent.

Valmont produces infrastructure used in the lighting and traffic, wireless communication and utility markets, industrial access systems, highway safety barriers and mechanized irrigation equipment. The company recorded net sales of $2.7 billion in 2011 and earnings of $228.3 million.

This is Advent's third exit in the last six months with a return of 2.5x or more. The GP sold its minority stake in Genesis Care to KKR in July 2012 - netting a 2.8x money multiple - as part of the global PE firm purchased a majority interest that valued the healthcare services provider at A$600 million. The following month Advent sold its interest in DVD manufacturer Regency Media back to company management, securing a 2.5x return.

The Locker exit means the majority of invested capital in Advent V Fund - a A$300 million vehicle raised in 2006 - has now been returned to LPs, with several portfolio companies still to be exited. Advent reached a first close of A$88 million on its sixth fund, which has a target of A$400 million, in late 2011.

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• Topics
• Exits
• Australasia
• Industrials
• Exit
• Trade sale
• Australia
• Advent Private Capital
• manufacturing