Anacacia backs MBO of Australian timber player

Big River has been owned by the Pidcock family for more than 100 years and has established itself as one of the country's largest privately-held timber suppliers. It has two manufacturing facilities and 10 distribution centers nationwide. Products ranging from timber flooring to laminated veneer lumber are sold to the civil, commercial and residential construction markets.

Anacacia, which first made contact with the Pidcocks three years ago, will provide capital and expertise to the management team as Big River moves into its next stage of growth. The construction materials industry in Australia is highly fragmented, while there is thought to be potential for further business development in New Zealand and the wider Asian market.

Three Anacacia directors have joined the Big River board alongside the managing director and CFO. The private equity firm made the investment out of its second fund, with one Hong Kong-based international LP participating as a co-investor.

Fund II reached a final close of A$150 million in mid-2013 and has since made investments in the likes of LEDified Lighting Corporation, K-Care Healthcare Equipment, Careers Group, and Yumi's Quality Foods. The firm, which raised A$52.75 million for its debut fund in 2007, typically focuses on companies with annual revenues of A$20-150 million.

Anacacia has generated a 40% net IRR and a 4x multiple from all its investments, according to a source familiar with the situation.

Advisors on the Big River deal included Thomson Geer and Deloitte, while JBS&G and Marsh worked on the environmental and insurance aspects, respectively.

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• Topics
• Australasia
• Buyouts
• Industrials
• Anacacia Capital
• Australia
• buyout
• manufacturing