CVC in A$530m Amatek sale

The London-based private equity firm has almost completed a full exit from Amatek, the Australian holding company it acquired in 1998 in Australia’s largest-ever leveraged buyout.

CVC Capital Partners has agreed the sale of the bulk of its remaining holding in Australia’s Amatek to New Zealand building products company Fletcher Building for A$530 million ($420 million).

When CVC acquired the whole of Amatek for A$1 billion from BTR Nylex seven years ago, it was – and remains – the largest LBO completed in Australia. Since then, it has sold off portions of the business, including wallboard maker Laminex Group for A$665 million in 2002.

The latest deal includes Amatek’s Insulation Solutions unit, as well as the Australian arm of the Rocla pre-cast concrete business; Rocla Quarry Products, a sand and rock extraction business; and Stramit Steel Products, a maker and seller of steel roofing, decking and framing. CVC is retaining the Rocla concrete railroad ties business, which is based in the US.

CVC Asia head Andrew Cummings described Amatek as a “modestly successful” investment in an interview with The Deal. The purchase price represents 6.2 times Amatek’s forecast EBITDA of A$86 million this financial year, or 5.5 times after taking into account A$60 million of tax losses.