THE ACQUISITION PROGRAM
Our Client – The Buyer
Headquartered in Victoria, Geofabrics Australasia is the leading manufacturer and supplier across Australia, New Zealand and the Pacific Region of geosynthetic products engineered for use in infrastructure projects. Over 40+ years of operation, the Business has focused on developing innovative products that use synthetic materials to achieve more cost effective, environmentally sound, and safer construction outcomes. In parallel it has established advanced manufacturing operations in Australia supported by extensive distribution infrastructure throughout Oceania. Key end-markets for its solutions include roads, rail, mining, coastal, waste, sports and recreation, renewables, water, defence, aviation, and ports.
After decades of strong organic growth, the Business made a strategic decision to pursue acquisitions as a means of accelerating diversification and further cementing its position as the leading supplier of infrastructure products in the Oceania region. In 2021, the directors engaged Johnsons Corporate to undertake an ANZ-wide campaign on their behalf to identify off-market buy-side opportunities. The mandate spanned the identification and qualification of suitable targets; the management of deal terms and price expectations; and the oversight / facilitation of the due diligence and legal processes.
The Acquisition Strategy
As an initial step Johnsons worked closely with CBS’s leadership team to design a clear acquisition brief. Targeting other manufacturers of similar &/or related infrastructure products, key investment criteria included revenues of between $15M to $80M, commensurate profitability, a portfolio of long-term customers, and an experienced management team.
With instructions to focus on enterprises manufacturing plastic-based products for use in civil, industrial &/or agricultural infrastructure, Johnsons’ custom research focused on identifying Australian & New Zealand providers whose offerings would dovetail with Geofabrics’ diversification strategy. Johnsons ran a proactive direct marketing campaign that uncovered multiple, off-market acquisition targets. A robust vetting process and subsequent negotiations with a shortlist of preferred targets resulted in the execution of an Agreed Terms Sheet between the buyer and its top-rated target.
(Read more about how using a Specialised Mid-Market Business Broker Approach to growing your business through acquisitions could get you a better outcome – just like our client).
The Acquired Target
Based in NSW, selling nationally, and with established export markets in New Zealand, South-East Asia, South Africa and the Middle East, Plascorp has operated for 60+ years manufacturing a range of industrial products used in irrigation, mining, drainage, and water supply. For its founding directors, this acquisition was an opportunity to access capital and capabilities necessary to attaining Plascorp’s next phases of growth, while building a long-term succession strategy.
What Our Client Had to Say
"Scott Anderson at Johnsons Corporate was exceptional in his service to the Geofabrics business and provided a turn-key range of services as the transaction matured from target identification and then connection with the sellers, deal negotiation, deal structure and terms and ultimately, assistance with the share purchase agreement. I highly recommend Johnsons Corporate for M&A support on both the Seller and Buyer side to a transaction."
Dennis Grech, Managing Director - Geofabrics Australasia