Affinity completes acquisiton of Primo Smallgoods

According to the newswire, 11 financiers participated in the deal: Challenger, Commonwealth Bank of Australia, Credit Agricole CIB, GE Capital, HSBC, ING Bank, Macquarie Bank, National Australia Bank, Rabobank, UBS and Westpac Banking Corp. That leverage is said to be set at four times, due to costs associated with Primo Smallgoods' capital expenditure needs and its debt after constructing a new facility.

A source close to Affinity told AVCJ in July that the firm initially secured commitments from 15 banks for its bid, but cut this back to 11 after financing was oversubscribed.

Affinity was reportedly in exclusive negotiations for a controlling stake in Primo Smallgoods last month, with the deal to be valued at $1 billion. Current reports suggest the final price is at least A$900 million. Affinity submitted its final bid in July, and was said to be competing with Blackstone Group, Archer Capital, Pacific Equity Partners and CHAMP Private Equity at some point during the auction process.

Primo claims to be Australia's largest producer of ham, bacon and small goods, and has contracts with Coles and Woolworths. The company reported an EBITDA of A$1.4 million for the most recent fiscal year.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Australasia
• Consumer
• Financing
• Affinity Equity Partners
• Australia
• Financial Services
• Consumer