Anacacia in 5x trade sale exit

Sydney-based Anacacia has exited an appliances company to an Australian corporate buyer and will soon close its second fund.

Anacacia Capital has agreed to sell its majority stake in Australia-based Home Appliances for A$22 million (€17.4 million; $22.6 million) to McPherson’s, a listed Australian housewares marketer, according to a company statement.

The exit represents an approximately 5x return and a 90 percent annual IRR, according to a source with knowledge of the matter. 

In total, McPherson’s is buying an 82 percent stake in the company, while the remaining stake will be held by Home Appliances’ management team, the statement said. 

Anacacia first invested in Home Appliances in 2009, when the family business chose to acquire the Euromaid cooking appliances brand. Since then, revenue has doubled to more than $40 million, according to Jeremy Samuel, managing director at Anacacia.

The exit comes out of Anacacia’s maiden fund, which has five remaining investments from a total of eight. The firm expects to complete more exits in the coming months.

During Anacacia’s investment, Home Appliances expanded its product range to electronic appliances, including dishwashers and dryers. “We wanted this company to be of value to a corporate buyer,” Samuel explained.

The key, Samuel believes, is to invest in a good company to begin with, but to also add value in terms of growth and the management team. “You really have to manage both the top line and the bottom line of the business,” he said.

Anacacia held a second close in November for its second fund on A$125 million, above its initial target of A$100 million. The firm expects to hold a final close on the second fund soon, Samuel said.