Advent in 2.5x Australia exit(2)

The Australian mid-market firm has sold its investment in metal manufacturer Locker Group, its third exit in six months.

Advent Private Capital has sold Melbourne-based metal manufacturer Locker Group Holdings to trade buyer Valmont Industries, according to a company statement.

The firm did not disclose the size of the deal, but said it gained a 2.5x return on its investment, which was within its typical investment range of between $50 and $200 million. 

Advent invested in Locker in 2006 and has since implemented a number of operational and improvement programmes concentrating on the company’s manufacturing, warehousing, procurement and IT operations. Locker, which produces metal products such as flooring and handrails, currently has annual sales of about $80 million and operates five manufacturing plants across Australia, New Zealand, India and China. 

“If you have good businesses that have strategic positions in the marketplace, you are in a market environment where most corporations are reasonably cashed-up, so [you are providing] acquisitions for them,” Advent managing director Rupert Harrington told Private Equity International.

He continued, “We expanded the business, it [now] has an operation in China, we established a joint venture in India – the India operation in particular became a sourcing option – we rationalised what we manufactured locally and what we imported. We also did a lot of product improvements.”

The Locker sale marks Advent’s third exit in the past year, according to the statement. In July 2012, Advent sold healthcare firm Genesis Care to Kohlberg Kravis Roberts at a 2.8x money multiple and Regency at a 2.5x money multiple.

Following the Locker exit, the firm says it will have returned the majority of invested capital in Advent 5 to investors.

Advent Private Capital is an Australia-based mid-market firm founded in 1984, according to Private Equity International’s data division. The firm currently has $550 million in assets under management and is investing from its fifth private equity vehicle, which is $300 million in size. Advent is also raising its six fund, which will have a similar target size to its predecessor. Advent VI made a first close on $90 million in 2011, according to the firm.