ANZ has arranged and completed the management buy-out (MBO) of Saeco ADI Limited and Precision Bearings & Transmission Limited from their Australian owner Consolidated Bearings Limited for $19.4m.
Motion Industries Limited a company owned by the MBO team and ANZ Private Equity made the acquisition. The acquisition was funded by equity from ANZ Private Equity and senior debt was arranged by ANZ Bank.
The Saeco ADI deal is the second management buy-out ANZ Private Equity have structured in the past five months and the third equity investment in the same period.
Mike Donovan, Managing Director of Motion Industries, says they were impressed by what ANZ Private Equity offered and their philosophy.
"As Lead Advisers and equity partners, ANZ Private Equity recognised the evolutionary opportunity for the companies to move to the next stage of their development and in their advisory capacity, retained a real focus on maximisation of shareholder value."
ANZ Managing Director, Dr Murray Horn, says ANZ is the only trading bank in Australasia with an integrated private equity business and it has a clear strategy for the growth of its business in New Zealand.
"Our focus is on our bank customers because of our existing relationships. We provide a one-stop-shop for these companies from valuation work to strategic analysis, right down to bottom line - private equity capital, corporate finance, structured debt and relationship banking.
"ANZ broadly focuses on three investment categories. Firstly we have development capital for established businesses looking to grow, secondly MBO's, and thirdly public-to-private (PTP) transactions were publicly listed companies are looking at returning to the private arena."
ANZ Head of Corporate Banking, Dean Adams, says one of the key issues for the corporate market in New Zealand has been the lack of product, especially at the equity end of the spectrum.
"ANZ Corporate Managers are now able to talk in the language of the owners and introduce these corporate finance concepts, backed by a strong product capability and established customer relationships. We believe we offer a very different proposition to our corporate customers than our competitors, one which is substantially more attractive, especially to well managed, growing companies."