PEP, KKR target SAI Global extends bid deadline
Australian risk management and standards compliance business SAI Global – which is subject to a takeover bid from Pacific Equity Partners (PEP) and KKR – has extended the deadline for other offers.
The company originally wanted all bids in by September 12 but this has now moved to September 16. The decision was made "following receipt of a request for an extension of time from a number of parties in the process," SAI said in a regulatory filing.
In May, PEP offered to buy all outstanding shares in SAI via a scheme of arrangement, valuing the company at A$1.1 billion ($1 billion). SAI, said that while it was open to engaging with PEP, it would launch a formal bidding process and make information available to other prospective buyers. KKR teamed up with PEP in July.
SAI audits, certifies and registers products, systems and supply chains through independent assessment to help companies reduce risk and improve product and service quality. It has three business units: information services, which provides information required to comply with regulatory standards; compliance, which puts together technology-enabled business solutions and staff training; and assurance, which covers risk management, certification and related services.
SAI is headquartered in Australia and 61% of its revenues come from this market. North American customers account for 24%, with 11% coming from Europe, the Middle and Africa and 4% from other regions.
Information services accounts for the bulk of revenues and the company's principal contract is with Standards Australia, a non-governmental standards development body. The 15-year deal comes up for renewal in 2018 and there are concerns that the terms will become less lucrative. SAI spun out from Standards Australia in 2003.
The company announced a statutory net profit of A$35.3 million for 2014, up from a loss of A$43.2 million the previous year. EBITDA dropped 7.3% to A$93.3 million while revenue increased 10.3% to A$527.7 million.
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