Report: CHAMP looking to exit two investments

CHAMP Private Equity will reportedly sell United Malt and International Energy Services, as it plans to hit the fundraising track for its third buyout fund.

CHAMP Private Equity, a Sydney-based buyout firm focused on Australia, is reportedly looking to sell two of its portfolio companies for a consideration of about A$1 billion ($871 million; €584 million).

The two companies in question are malt producer United Malt Holdings and International Energy Services, a fuel distribution and logistics company, Reuters reported, citing an article in business daily The Australian Financial Review.

While International Energy Services could be sold for between A$400 and A$600 million, United Malt could sell for up to A$700 million, according to the report.

It added that Goldman Sachs JBWere and ABN AMRO were arranging the sale of United Malt, while JPMorgan has been given the go ahead to sell one of the business of International Energy Services.

An unnamed banker was cited in the report as saying that the firm was making the exits to demonstrate to investors that it can deliver returns on its investments as it looks to start raising a new fund. CHAMP is reportedly targeting A$2 billion for its third buyout fund, more than double the size of the firm’s previous offering which closed on A$950 million.

CHAMP Private Equity and its affiliate, New York-based mid-market buyout firm Castle Harlan, created United Malt Holdings in 2006 following the acquisition of malting companies in the US, UK, Canada and Australia.

The acquisition of International Energy Services was completed by CHAMP in January 2005.

CHAMP could not be reached by press time.