THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Based in Acacia Ridge QLD, Optical Fibre Systems provides premium optical fibre communication solutions, primarily to long-term government and corporate clients. The Business delivers both contracting services for site works across QLD (together with related consumables and termination equipment) and also custom designs & manufactures specialist products tailored to the needs of the Energy and Mining industries nationally. These include optical ground-wire joint closures, down-lead cushions for overhead structures, storage reels & mounting clamps, and termination closures. Differentiated by the calibre of its in-house engineering expertise and the depth the team’s field experience, the Business is recognised for delivering highly effective solutions.
Originally founded over 30 years ago, this family business had long been managed by two brothers (both electrical engineers) when they decided it was time to initiate a succession strategy. Without any candidates in the next generation of family members, they engaged Johnsons to undertake a national divestment campaign seeking a new owner on their behalf.
The National Sales Strategy
Boasting strong niche positioning, Optical Fibre Systems represented an attractive opportunity for prospective acquirers. Key attributes of the Business included its high stature in the QLD Energy sector, where it had long been the acknowledged leader in jointing & testing field work. Backed by in-house technical capabilities and a proven track record, OFS had become a long-standing and trusted supplier to leading public-sector and private enterprises. These accomplishments were further complemented by secondary income streams through the national supply & distribution of specialised products.
Johnsons Corporate’s custom research & marketing focused on the Australian market, targeting companies operating in the broader optical fibre sector as the primary segment. Secondary target segments included tier-one contractors to the energy & mining sectors as well as the providers of more generic electrical / data / communications services.. Johnsons’ proactive direct marketing campaign uncovered a wide range of interested parties from across the different research segments. It elicited 34 expressions of interest. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 10 weeks of going to market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The Financial Buyer
The purchaser, Maranello Capital, is a privately-owned investment vehicle, which manages a diverse range of investments across private & publicly listed corporations; commercial & residential real estate; private equity and various investment funds. This acquisition strongly complements some of Maranello’s internal capabilities as well as its existing investments, opening the door to enhanced cross-selling opportunities.
What Our Client Had to Say
"We came across Johnsons Corporate on the internet and reached out to them. After some initial discussions their approach made sense and we decided to move forward. Our business could be considered a niche business and they did a great job at listening to us and understanding our particular business and potential purchasers. Now the deal has completed, there has just been nothing that I can fault with the whole process and they were an absolute pleasure to deal with... I have no hesitation to provide this reference and based on my experience I would always advocate that people use a broker. I can now see that without professional help you have a very difficult path to tread."
Don Rush Director - Optical Fibre Systems