Australian private equity firms CHAMP and Pacific Equity have been beaten to the punch for Loscam, a pallet-maker owned by Affinity Equity Partners, by Chinese state conglomerate China Merchants Group, with a deal value estimated at up to AUS$700m ($587m).
CHAMP and Pacific Equity had both reportedly progressed to the second round of the Loscam bidding, and were tipped to be among the frontrunners. Larger buy-out firms KKR, Bain Capital and Warburg Pincus were also said to be eyeing the company, while Carlyle reportedly put in a preliminary offer but decided not to proceed to the next round.
Loscam, which was acquired by Affinity for AUS$250m ($209.8m) in 2005 from DB Capital Partners, is a supplier to the world’s largest pallet-supplier, Brambles.
China Merchants Group president Dr Fu Yuning said, “The addition of Loscam to our group is a major milestone and provides a great opportunity for our business. Loscam is the first major overseas acquisition by China Merchants Group outside of the Asian region.”
China Merchants Group is a state-owned business conglomerate, established in 1872, with a focus on transport and infrastructure, property development and management, and financial investment and asset management. Its total assets stood at $39bn as of 31 December 2009.
Copyright © 2010 AltAssets
Article is in the following categories:
Private Equity News» By News Type» Deal News
Private Equity News» By PE Sector» Buy-out
Private Equity News» By Region» Australasia» Australia
Private Equity News» By News Type» Deal News
Private Equity News» By PE Sector» Buy-out
Private Equity News» By Region» Australasia» Australia








China Merchants beat out CHAMP, Pacific Equity for pallet-maker