Private Equity News & Analysis

Archer Capital in $676m fuel exit(2)

The Australian country manager has secured a Switzerland-based buyer for its independent oil company investment Ausfuel.

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Sydney-based Archer Capital has exited a majority stake in independent oil company Ausfuel to Switzerland-based strategic buyer Puma Energy. The size of the deal is undisclosed, but local media reports place it around A$650 million (€503 million; $676 million). 

The exit comes from the firm’s Fund IV, which has already had four exits, according to a Vantage Private Equity Growth report. After the Ausfuel exit, the fund will still have four investments.

Archer originally acquired a majority stake in Ausfuel in May 2010. It subsequently grew the company by four times with two bolt-on acquisitions in November 2010 and 2011. Ausfuel now sells 1.2 billion litres per annum through 120 service stations across Australia, according to the statement.

Archer declined to comment.

Australia’s private equity market has been less than stellar in terms of exits – the value of trade sales, secondary sales and IPOs all declined more than 50 percent for the first nine months of 2012, according to data from Thomson Reuters.

With $3 billion assets under management, Archer Capital is an Australian-focused buyout firm that targets both small and mid-size businesses, according to the firm’s website. In December 2011, Archer closed its fifth fund on A$1.5 billion in four months.