THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
The Ausdeck Group is a collection of specialist manufacturing businesses serving several sectors across the Australian home improvement & construction industries. The Group is comprised of four interrelated business units with vertically integrated supply lines, each operating independently to serve specific market niches. Acquired in 2000 Roll Form Industries (operating since 1977) manufactures roll-formed steel products for residential, commercial, mining, electrical, telecoms and agricultural markets; launched in 2002 Ausdeck Patios & Roofing manufacturers patios & roofing systems for both home improvement and commercial markets; formed in 2007 Bent Sheetmetal manufactures metal rainwater, flashing and gutter solutions for the home improvement and commercial construction markets; and acquired in 2016 Fusion EPS manufactures expanded polystyrene products for the building and laminated panel markets among others. By FY19 the Ausdeck Group employed circa 120 staff across multiple operations in QLD and NSW, with consolidated revenues exceeding $42 million.
Having built up the combined businesses over almost 20 years, in 2019 Ausdeck Group’s founding director engaged Johnsons to undertake a strategic divestment campaign, comprising the sale of all four business units. His objective was to exit his shareholding, crystalising historical growth, while ensuring continuity for the Group’s businesses, their long-dedicated management teams, and employees.
The Business Sales Strategy
In the context of Australia’s strong building & construction sector, this acquisition opportunity would prove attractive to prospective buyers seeking to leverage Ausdeck’s large-scale advanced manufacturing capacity, its market leading position across complementary product segments, and its strong consolidated balance sheet.
Johnsons Corporate’s custom research & marketing focused on related manufacturing businesses in international markets and comprised the suppliers of metal roofing products as well as diversified building products. In addition, Johnsons commissioned secondary research into the global PE sector to identify firms whose investment parameters spanned the construction supplies sector. Johnsons ran a proactive direct marketing campaign that uncovered multiple interested parties. However, with the advent of Covid-19 and the consequent impact on international travel, a decision was made to refocus the campaign to target Australian family offices & financial acquirers. After a second marketing campaign, Johnsons had generated a total of 32 expressions of interest. Further vetting and negotiations resulted in the selection of a preferred buyer.
The Financial Buyer
Alpin Group is an Australian integrated investment and advisory house, focused on privately owned businesses in Australia and New Zealand. For Alpin, this acquisition provided an opportunity to back and further develop a highly successful Australian manufacturing firm, as well as a springboard into the growing home improvement and construction sectors.
What Our Client Had to Say
"I guess to sum it all up, the team at Johnsons led me through the whole process and provided invaluable guidance along the way. They assisted me to overcome numerous obstacles, which were unforeseen from my perspective and managed the multiple stakeholders from beginning to end. And when all I needed was a sounding board to talk through issues or simply get something off my chest – Johnsons were always there and available."Stewart Craig - Founder - Ausdeck Group