Unitas on course to exit Exego to US-listed Genuine Parts
Exego Group, an Australian auto parts distributor owned by Unitas Capital, has sold a 30% stake in itself to US-listed Genuine Parts Company for around $150 million in cash. The transaction will take the form of a new share issue, with Genuine Parts carrying the option to acquire all remaining shares in Exego at a later date, subject to the Australian firm meeting certain earnings thresholds.
The deal, which Genuine Parts announced in a filing with Securities and Exchange Commission, is expected to close on or around December 1.
Unitas, then known as CCMP Capital Asia, completed the buyout of Exego, then known as Repco, in 2006. The transaction, made through the private equity firm's $1.6 billion Asia Opportunity Fund II, was priced at 8.6x EBITDA and translated into an enterprise valuation of around $570 million.
Exego, headquartered in Melbourne, is a leading aftermarket distributor of automotive replacement parts and accessories in Australasia, with annual revenues of approximately $1 billion and a network of more than 430 outlets across Australia and New Zealand.
"Genuine Parts Company is a natural long-term owner with a commitment to growth in this industry, and we intend to use the injected funds to pursue this objective," John Moller, managing director of Exego Group, said in a statement.
Should the deal result in a full buyout, it would be Unitas' second Australasian exit in a month. In late August, Unitas and Pacific Equity Partners agreed to sell New Zealand beverage firm Independent Liquor to Japan's Asahi Group for NZ$1.525 billion ($1.27 billion). The private equity firms secured a 1.5x return on their original NZ$1.2 billion investment made in 2006.
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