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  • Australasia

Quadrant and Ironbridge complete Australian retail buyout

  • Susannah Birkwood
  • 15 August 2012
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Australian private equity groups Quadrant Private Equity and Ironbridge Capital have realized a buyout of specialized retail businesses Super A-Mart and Barbeques Galore.

Existing backer Ironbridge is rolling its existing investments in the firms into the newly combined entity, while Quadrant is pumping in A$135 million ($141 million) for around 60% of the newco. The $135 million valuation represents 13x the company's forecast EBITDA for 2013.

This amount includes a modest contribution from co-investors Macquarie Group and Partners Group, which together with Ironbridge rolled over their existing stakes, which total 35%. Management retains the remaining 5% of equity.

A new five-year debt package worth around $250 million has been arranged, with funding provided by a consortium of seven existing and new lenders.

The combined group is expected to generate sales of up to $750 million.

"We have looked at a lot of retail opportunities and consider this to be one of the most exciting," said Quadrant Managing Director Chris Hadley. "This is a scale business with both Super A-Mart and Barbeques Galore leaders in their categories with significant growth opportunities."

Super A-Mart has track record of opening new stores in its home state of Queensland and in other states. The company's new owners intend to continue to accelerate this rollout, explained Quadrant Director Marcus Darville.

Ironbridge, which was represented by Co-CEO Greg Ruddock on the deal, is currently fundraising for its third fund, which has a target of between $500 million and $1 billion.

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