Australia's Gresham PE exits freight business to McAleese

WAFG is the leading small freight carrier on Australia's east-west corridor, operating a network of depot facilities in all major cities. The client base is dominated by small and medium-size enterprises from sectors including fast moving consumer goods, retail, print, food and beverage, and light manufacturing.

The company started out as WA Freightliners, servicing express customers in Western Australia, but it merged in 2004 with Jolly's Transport and Jetstyle Express to form WAFG. Gresham acquired the business four years later, combining five family-owned transport and logistics businesses to form Silk Logistics.

The private equity firm paid A$200 million in cash and debt, committing the initial capital from Gresham Private Equity Fund 2, a A$325 million vehicle that closed in June 2005.

Over the past 12 months Gresham has exited Silk's two other operating divisions, Bunker Freight Lines and Silk Contract Logistics.

The acquisition price equates to an EBITDA multiple of 2.5-3x, based on current annual revenues of approximately A$90 million. McAleese said in a regulatory filing that it plans to keep the current management team in place and invest A$5-7 million in upgrades.

Apart from Silk, Gresham only has one other company listed on its website as a current investment, mining contractor Barminco, which refinanced $485 million in debt last year. Last September, the firm exited Tasmanian Walking Company for an undisclosed sum.

King & Wood Mallesons advised Gresham on the WAFG sale.

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• Topics
• Exits
• Australasia
• Industrials
• Logistics
• Australia
• Gresham Private Equity
• Exit
• Trade sale