Metco Industrial acquired by Thoroughclean Australia

DIVESTMENT - INDUSTRIAL WATER BLASTING EQUIPMENT

Our Client – The Vendor

Metco Industrial specialises in the design, assembly and manufacture of high pressure (4,000 to 40,000 psi) industrial water blasting equipment built to meet Australian conditions. Based in Adelaide, it services markets across Australia and the South Pacific, supplying industrial services firms with customised solutions for high pressure cleaning & surface preparation as well as cold cutting & hydro-demolition. The Business holds distribution agreements with leading global equipment brands and is recognised for its depth of technical expertise. Its ability to integrate a mix of high-end components with added safety features and purpose-built functionality positioned Metco as a niche value-added integrator.

Operating for over a decade, the Business had established three income streams – new equipment sales, consumable spare parts & components, and equipment rental – balancing projects with recurring revenue streams. Over the 5 years preceding the divestment process, Metco succeeded in doubling its turnover, whilst maintaining solid net margins. Metco’s owner sought to put in place a succession strategy that would identify a strategic acquirer who could take the Business to the next level. After considering several options for a sale process, including its own mid-tier national accounting firm, Metco’s Director engaged Johnsons Corporate as a specialist mid-market business broker to assist with selling the Business.

The Sales Strategy

For an acquirer Metco represented a profitable business, boasting a broad customer-base in the growing industrial services sector as well as a range of unique distribution agreements with leading global equipment brands. It was run by a reliable & stable team and had effective systems & processes in place for delivering outputs and managing its cost base. With strong demand drivers in downstream industries, the Business was well positioned for continued future growth.

Johnsons Corporate’s custom research & marketing focused on commercial enterprises in the Industrial Equipment Distribution sector – going beyond water blasting equipment to incorporate related industry segments such as hydraulic & centrifugal pumps, abrasive blasting products, tank vacuum equipment, and industrial equipment – and included major players in the global water blasting market. Johnsons ran a proactive direct marketing campaign that uncovered +35 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 Buyer

ThoroughClean is a QLD manufacturer of mid-range high pressure water cleaners (2,000 to 15,000 psi) supplying several market sectors. The acquisition of Metco was a significant step in broadening the company’s supply base & diversifying its offering with the objective of becoming the leading supplier of high-pressure solutions across Australia & New Zealand.

What Our Client Had to Say

"The monthly retainers charged by Johnsons Corporate concerned me, as our accountant had no requirement for a retainer. However, Johnsons specialised in selling private businesses like mine and we really liked their approach. So my General Manager and I decided to go with them... In the end we sealed the deal in less than 5 months of going to market."

Derek Bade, Director - Metco Industrial

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