Our Client – The Vendor
Based on Queensland’s Gold Coast, Mayneline is a leading cabinetry and joinery manufacturer specialising in multi-storey residential developments in the greater Sydney, Canberra, Melbourne and Brisbane metropolitan areas. Operating through two divisions, the Business provides turnkey joinery solutions to leading tier-one and tier-two builders / developers of premium projects ranging in size from 50 to 800+ units. Requirements for such projects typically include kitchens, wardrobes, shaving cabinets, vanities, linen/storage cupboards, study/media units, wall paneling, and more. Recognised as one of the leading and most reliable large-scale manufacturing joinery plants in Australia, the Business differentiates itself via its fully automated, just-in-time production processes. These are further supported by world-class machinery as well as custom software systems created to fully automate the manufacturing process.
After growing the business over 12 years, Mayneline’s Director engaged Johnsons as specialist mid-market business brokers to assist with selling the Business. At the time Mayneline was operating from two premises with the main factory comprising 1,250 sqm including office and administration space. It had approximately 30 full-time staff plus 50 casuals & subbies and employed some of the latest custom software and Biesse machinery.
The International Sale Strategy
As an acquisition, Mayneline represented an established business with a history of consistent financial performance & growth, a long-standing customer-base, and a strong pipeline of future works – including a forward order book for the next 18 months. Predominantly run by its highly skilled second-tier management team, it was an opportunity for strategic buyers seeking to leverage the shift in Australia towards higher density living – a trend that would continue to drive future demand for the multi-storey residential building sector as a whole.
Johnsons Corporate’s custom research & marketing focused on a core market of Australian and international Joinery Manufacturers. In addition, Johnsons researched secondary/related Australian markets, including: Building Materials Manufacturers, Commercial Construction Companies, and Commercial Fit-Out Companies as well as prospective private equity & financial buyers. Johnsons ran a proactive direct marketing campaign that uncovered 25 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 for a purchase price of $13 million being secured within 14 weeks of going to market.
The Business was purchased by interests associated with a national construction group. This acquisition presented an opportunity for strategic diversification as well as control over the supply of key inputs. It has simultaneously broadened the group’s service offering and extended its customer-base.