Our Client – The Vendor
AVFI Pty Ltd is one of Australia’s leading suppliers of water management valve products and solutions. Operating from premises in Melbourne, it services government and private companies Australia-wide, with a diverse customer base that spans: Water Supply and Water Waste, Mining, Coal Seam Gas, Irrigation, Aquaculture, Chemicals, and Cryogenics. The Business markets a comprehensive range of valve products – both premium 3rd-party brands and its own proprietary products – as well as engineering specialists who provide consulting services. In addition to being consistently profitable since its establishment in 1995, AVFI has built a solid reputation for delivering robust, quality solutions. www.avfi.com.au
Reflected in its long standing customer relationships, AVFI is well positioned as a provider of turnkey solutions that address a majority of valve needs. Its business model is based on a dual distribution system, with channels to market including direct sales and 3rd-party distribution through a national network of tier 1 resellers. Run by an experienced management team, the Business also stands out for strong supplier relationships. In late 2014 the owners engaged Johnsons Corporate as specialised mid-market business brokers to facilitate a sale to a strategic acquirer with the resources and management depth to leverage AVFI into a truly national operation.
The International Sales Strategy
For an acquirer AVFI represented an established and profitable business model with strong growth prospects. Its reputation, management structure and technical capabilities made the Business a strong candidate for winning larger private and government opportunities. These attributes combined with its broad product and solutions range also created the potential for geographic expansion into other under-serviced areas of Australia.
Johnsons Corporate’s custom research & marketing focused on Valve, Pump & Pipe Distribution companies operating Australia & Internationally. Secondary targets comprised other types of industrial product distributors in Australia. Johnsons ran a proactive direct marketing campaign that uncovered 37 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer as well as a backup buyer, with Offer and Acceptance secured within 12 weeks of going to market.
The purchaser, PON Group, is an international trading and services company, which sought to grow its distribution platform in Australia via acquisition. Employing almost 13,000 people across 32 countries, PON is active in the American and Asian flow control industry. It predominantly serves the marine, process and chemical Industries, and offshore/drilling sectors.
What Our Client Had to Say
"From the very beginning of the project, the team at Johnsons Corporate demonstrated a very high level of professionalism and focus... Johnsons’ detailed target research combined with the robust marketing activities, enabled us to attract multiple interested parties both locally and overseas... Given the importance of the transaction to both ourselves and our staff, we were very pleased with the outcome achieved."Greg Stovell & Trace Bakker, Directors - AVFI