Navis sells King's Safetywear to Honeywell International

King's Safetywear will be integrated into Honeywell's automation and control solutions business Honeywell Life Safety. According to Honeywell, a Fortune 100 diversified technology and manufacturing firm, its purchase price values King's Safetywear at 11.5x estimated 2011 EBITDA.

J.P. Morgan advised the parties on the sale, which is slated to be closed by early next year, pending regulatory approval.

Navis, through its Navis Asia Fund V and Fund V-S, purchased King's Safetywear in December 2008 for S$95 million (then $74 million), and delisted it from the Singapore Stock Exchange. King's Safetywear had launched on the bourse in 2003, raising S$17.4 million in its IPO, which valued the company at S$68.1 million.

It emerged last month that Navis intended to exit its stake, with reports noting that the private equty firm was seeking $300-$500 million for the asset.

The rising value of King's Safetywear over the years corresponds to the company's strengthened position as a leading producer in its niche. The company claims a more than 50% share of the industrial safety footwear market in Singapore, Malaysia and Indonesia, and distributes its shoes in 40 countries in Asia, Europe, North America, the Middle East, Australasia and Oceania. It further has manufacturing facilities in Indonesia, Portugal and Australia.

In January of last year, it strengthened its position through the acquisition of Oliver Footwear, Australia's biggest safety footwear manufacturer. In addition to King's and Oliver, the company has also owned Otter, a premium segment German safety shoe brand, since 2002.

"It has been a rewarding experience working with KSW's management team but we believe that the company has now found a good home with Honeywell," Rodney Muse, co-managing partner at Navis, said in a statement. "In the case of KSW, our efforts at value creation through the streamlining of supply chain, the merger with Oliver Footwear in Australia and the emphasis on product innovation have paid off handsomely with Navis as a pivotal force in establishing the company's competitive position, namely a leading brand with strong cash flow generation and an even stronger global market presence."

King's Safetywear claims approximately 1,500 employees across Southeast Asia, Australia and Europe, and has estimated 2011 sales of $138 million.

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• Topics
• Southeast Asia
• Exits
• Consumer
• Singapore
• Navis Management
• Rodney Muse
• Trade sale
• Exit
• Consumer