PAG buys portfolio companies from Harmony Capital
PAG has taken full ownership of Harmony Investment Fund, and its associated portfolio companies, from Singapore-based Harmony Capital Management, sources familiar with the development told AVCJ.
The portfolio companies include Australian meatworks Kilcoy Pastoral and Harvey Industries, both of which are majority-owned by the Harmony Investment Fund. A person briefed on the matter said an undisclosed number of other portfolio companies are also included the takeover agreement between PAG and Harmony Capital.
The transaction was made by the Pacific Alliance Special Situations Fund, which is part of PAG's absolute return strategy, the person added.
According to AVCJ Research, Harmony Investment Fund is a $500 million special situations vehicle set up by Suresh Withana, who previously worked on restructuring at Merrill Lynch and was responsible for Asia Pacific in Mizuho International's global special situations group. Apart from Kilcoy and Harvey Beef, the portfolio companies include Australian defense technology provider Metal Storm and Indonesia's Bank Mayapada International.
Harmony held 80% of the Kilcoy business, an export abattoir in Queensland. Kilcoy confirmed the transfer of ownership to Beef Central, with CEO Tony Munns stressing that there would be no change in Kilcoy's operations, directors and management.
Harmony's $23 million acquisition of Kilcoy took place in 2006, while it bought family-owned Harvey Industries across two transactions - together worth about $23 million - in 2006 and 2009.
PAG has funds under management across private equity, real estate and absolute return strategies. In April, PAG Asia I LP Fund became a cornerstone investor in Haitong Securities' Hong Kong IPO, buying $300 million worth of shares as part of a potential $1.68 billion offering. One month earlier, the private equity firm invested $250 million in Shaanxi-based Bicon Pharmaceutical Holdings.
PAG's private equity strategy focuses on investments in China and other regions across Asia, targeting buyouts and structured transactions. It focuses on consumer retail, food and beverage, financial institutions, industrials and transportation, energy and resources and healthcare.
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