CHAMP secures A$128m Nuplex carve-out

The Australian firm has acquired two of the ASX-listed company’s non-core businesses

CHAMP Private Equity has agreed to carve out two business units of Australian publicly-listed company Nuplex in a deal worth A$127.5 million ($112 million; €88 million) as carve-out opportunities in the country continue to increase.

The Australia-focused firm bought its agency and distribution business, Nuplex Specialties, and its plastic additives business, Nuplex Masterbatch, through a newly-created holding company Axieo, as the units were increasingly becoming non-core.

“The board was not actively seeking to divest these businesses, however they have become increasingly non-core to the Company’s strategy as the resins business has continued to grow. When the offer was received from CHAMP, we undertook a careful evaluation of the medium term outlook for both businesses, and in the context of Nuplex’s strategy, we assessed the return they could deliver shareholders as part of our portfolio relative to the offer price,” Nuplex chairman Peter Springford said in a statement.

He added, “The offer delivers a premium for these two principally Australian and New Zealand focused businesses as stand-alone entities and the divestment is in line with Nuplex’s strategy to focus on the global resins business.”

CHAMP is just one of the private equity firms taking advantage of the growing number of corporate carve-out opportunities in Asian markets.

Pacific Equity Partners will also focus on corporate carve-out opportunities in its latest private equity vehicle, among other opportunities, which is expected to raise close to A$2 billion, sources told Private Equity International earlier.

The firm has had success in spinning off business units, having carved out Peter’s Ice Cream from Nestle in 2012 and selling the business at a close to 3x return in June this year.

Japan and Korea, too, have been pegged as hotspots for providing private equity deals from businesses divesting non-core assets.

Earlier this year, Kohlberg Kravis Roberts acquired the healthcare unit of Panasonic in a $1.6 billion deal, while MBK Partners and Morgan Stanley Private Equity Asia have closed carve-out deals in Korea – buying assets from ING Group and Hanwha respectively.