Hawkesbridge Private Equity Acquires Bulk Handling Australia

Hawkesbridge Private Equity, Australia's largest fund investing in companies with an enterprise value of up to $60 million, today announced it has acquired Bulk Handling Australia (BHA) for an undisclosed sum.

BHA, founded and owned by Howard Riley, is Australia's leading manufacturer and importer of Flexible Intermediate Bulk Containers (FIBCs) servicing blue-chip clients in Australia and New Zealand. Mr Riley will retain a significant stake in the business and remain as a Director. FIBCs are used to transport food, industrial minerals and fertilizers.

"Bulk Handling Australia is a perfect example of the type of company that Hawkesbridge likes to invest in," said Hawkesbridge Private Equity managing director and partner David Plumridge. "It has a blue chip customer base, an experienced management team, and is acknowledged as the leader in its market segment. We believe that companies of this size and quality make excellent private equity investments."

Hawkesbridge Private Equity manages $200 million on behalf of significant Australian superannuation funds and targets companies valued up to $60 million with strong management teams, competitive positions and strong growth prospects. BHA is the first investment from the Hawkesbridge Private Equity Fund 3, which received strong support from existing and new investors.

"Fund 3 will seek to invest in between six and eight expansion and management buy-out or buy-in opportunities, chiefly focusing on Australian owner-operator businesses with enterprise values of greater than $10 million but less than $50 million," said Joshua Rowe, co-managing director and partner at Hawkesbridge Private Equity.

"Hawkesbridge is well placed to assist business owners with their succession plans as well as work with incumbent or external management teams to facilitate management buy out/buy-ins. Given our previous experience, we hope to deliver sale outcomes that suit small-medium sized business vendors," said Mr Rowe.

Mr Plumridge said the private equity landscape was becoming increasingly crowded at the top end of the market, with lots of money chasing a limited number of deals. "Given the lack of private equity firms in our space we believe there is a significant opportunity to find exceptional businesses in a less competitive environment."

Potential exits for investments made by Hawkesbridge Private Equity may include secondary sales to larger private equity firms. "One of the investment objectives of Fund 3 will be to invest in and consolidate fragmented industries with an aim to achieve an arbitrage on exit," said Mr Plumridge.

Bulk Handling's Board has been boosted by the appointment of Colin Henson as Chairman. Colin is currently a Director of listed companies Hedley Leisure and Gaming (Chairman), ERG (Chairman) and MYOB. Peter Morley has also been appointed as Managing Director. Peter was previously Managing Director of Cabot Australia.

Mr Riley, Bulk Handling's founder, said that partnering with Hawkesbridge was the logical next step in the evolution of BHA. "I'm excited that I will continue to be involved in the business and be contributing to its success," he said.

ANZ Leveraged Finance provided the debt finance package through its Sydney office for the Bulk Handling deal. Hawkesbridge was advised by Corrs Chambers Westgarth, Ernst & Young and Crescendo Partners.

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For more information please contact:

David Plumridge or Joshua Rowe at Hawkesbridge Private Equity on (02) 9233 7200

For media enquiries:
Michael Mullane
Savage & Partners on (02) 8281 3232 or 0414 590 296