Australian Medical Couches sold to Forme Technologies

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Australian Medical Couches (AMC) is an Australian designer and light manufacturer of couches and examination tables for medical practitioners. The Business focuses on a select set of speciality products sold nationally to niche medical markets within the Public and Private Health sectors. Its long-established customer-base of medical practitioners includes sonographers, obstetricians, gynaecologists, urologists, podiatrists and dermatologists. The Business has a solid reputation for its leading designs, quality Australian-made product, reliability and its commitment to client satisfaction. At the time of sale AMC’s reputation in combination with strong growth in the health sector enabled consistent performance.

AMC was founded in 1985 and subsequently acquired from its original founder in 2001. The new owners, Markus and Claudia Egli, updated and improved designs and gradually brought key components of the manufacturing process in-house in order to increase quality, improve margins and provide better value-for-money to customers. In late 2011 they engaged Johnsons Corporate as a specialist mid-market business broker to undertake a divestment campaign on their behalf. Having spent 10 years growing the business, they felt it was the right time to allow a strategic buyer to take the things to the next level while they transitioned into retirement.

The Business Sales Strategy

An acquisition of AMC represented a great bolt-on opportunity for an established trade buyer looking to extend its product range, market segments &/or geographic footprint. With its exposure to the growing health sector, the Business offered the potential to leverage the brand and customer relationships for cross-selling complementary offerings within its niche market.

Johnsons Corporate’s custom research & marketing focused on Manufacturers and Distributors within the Australian Healthcare Equipment Sector. It also covered related / secondary markets targeting Engineering and Fabrication businesses. Johnsons ran a proactive direct marketing campaign that uncovered +50 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 6 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 Australia Trade Buyer

The purchaser, CL Plastics t/a Forme Technologies is a plastics fabricator, seeking to access the healthcare equipment sector. They were identified as part of the related/secondary market of engineering and fabrication companies.

AHPC acquired by Pacific Hoists

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Established for approximately 20 years, Air & Hydraulic Power Centre (AHPC) had developed into a specialist mining services player. It provides testing, repairs, maintenance and sales of hydraulic torque equipment, pneumatic tools, high pressure hydraulics and heavy lift equipment to the mining industry. Not being tied to specific brands means the Business can offer a mix of on-site and factory-based services that allows customers to streamline their internal processes. AHPC also manufactures several bespoke products to meet the specific needs of its clients.

At the time of sale, the Business operated as a stand-alone business unit within a much larger private business, which specialised in large-scale heavy engineering and fabrication works. Located in Western Australia, AHPC had been acquired when the original founder retired in 2007. In early 2013, following a strategic review, it was classified as non-core and earmarked for divestment. Johnsons Corporate was then engaged as a specialised mid-market business broker to undertake a strategic business sales campaign on behalf of its parent.

The Business Sale Strategy

As an acquisition AHPC presented a great bolt-on opportunity for a buyer within the sector seeking further growth. Having achieved 45% growth over 3 years, its four main sources of revenue comprised mobile on-site services, workshop services, product sales, and Naval Service work. With general demand for compliance services increasing, future growth opportunities included: expansion across the mining sector and diversification into new markets, e.g. oil rigs & infrastructure; extension of bespoke product lines and their distribution, and; full development of a fledgling hire equipment offer.

Johnsons Corporate’s custom research & marketing focused on commercial enterprises in Australia’s Hydraulics Engineering and Mining Services sectors. It also incorporated targets from related market sectors, including: Lifting and Rigging Equipment, Torque Equipment & Pumps, and Mobile & On-site Equipment Repairers. Johnsons ran a proactive direct marketing campaign that uncovered +22 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 4 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 Australian Trade Buyer

The purchaser, Pacific Hoists Pty Ltd, which provides materials handling and lifting equipment services, was identified through primary market research. It is a privately owned, family business founded in 1976 that offers national networks to service its customers promptly and professionally while maintaining a market leading position in both Australia and New Zealand.

Australian Online Spare Parts Reseller sold to an Undisclosed Overseas Buyer

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Johnsons’ client “Spares Online” operates a proprietary online eCommerce platform, paired with automated distribution systems, for the national retailing of spare parts & consumables for a wide range of domestic appliances and consumer electronics. It offers one of Australia’s largest ranges of 4 million parts through a front-end website that makes it easy for consumers to find the right item and carry out their own DIY installation. The online shopfront is backed by a leading-edge, proprietary IT platform and a highly automated operational environment. These ensure a seamless customer experience, while providing the Business itself with significant cost & productivity efficiencies.

At the time of sale “Spares Online” was highly ranked, attracting +1.3 million visits, +10 million page views and had completed over +65 thousand pre-paid orders in the previous year. The Business was both efficient & highly profitable, generating +60% sales growth over the preceding 4 years with healthy EBIT margins and just 7 staff. After 10 years of building the Business to be one of Australia’s leading online spares resellers and having recently started a young family, the Vendors sought a strategic acquirer to take the Business to the next level. Following discussions with one of the Big Four accounting firms, they decided to engage Johnsons Corporate as mid-market business brokers who specialised in selling mid-sized private businesses to strategic trade buyers.

The International Sales Strategy

As an established and profitable eCommerce business in a high growth sector, “Spares Online” presented potential acquirers with a number of attractive opportunities. Not only could they leverage the Business’s comprehensive product database, its +400,000 customer-base, and a proprietary DIY wiki database of +70k entries – new owners would also have at hand a unique just-in-time distribution platform ready-made to bring to market any number of additional consumer goods categories.

Johnsons Corporate’s custom research & marketing spanned local and international markets, focusing on Online Retailers as a primary segment. As secondary target segments it also took into account commercial enterprises operating in related markets – including Spare Parts Distribution, Technology & Electronics Supply, and Repair & Maintenance Services – as well as a shortlist of private equity & financial buyers. Johnsons ran a proactive direct marketing campaign that uncovered +35 qualified, interested parties. Within 8 weeks of going-to-market Johnsons had secured written offers from 3 competing parties, with Offer and Acceptance secured with the preferred buyer 3 weeks later.

(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 Overseas Trade Buyer

Based in Europe, the buyer is a leading spare parts supplier to markets across the EU and globally. For this wholesale distribution group, the acquisition presented an opportunity to expand into a new geographic market as well as to diversify its revenue streams.

BusinessWorks purchased by Hal Group

THE DIVESTMENT CAMPAIGN

Our Client

Based in Melbourne, BusinessWorks is an IT services provider focused on the SME segment in its regional marketplace. The Business offers a mix of high value-add services centred around a core Managed Services offering. Those subscription based services are complimented by stand-alone Solutions Services – the project-based consulting, design & deployment of small business IT solutions using today’s leading-edge technologies – as well as On-Demand Support Services, which comprise ad-hoc fee-for-service jobs completed through full-service in-house workshop. BusinessWorks’s one-stop offering and high service levels differentiate it from competitors in a highly fragmented market.

The effectiveness of BusinesWorks’s business model is reflected in its long-tenured customer-base and also in the consistency of revenue growth and profitability achieved over the five financial years through FY17. In 2017, having established and grown the Business for +20 years, BusinessWorks’s owner sought to exit in order to focus more of his energy and resources towards personal interests and eventual retirement. As a specialist mid-market business broker, Johnsons was engaged to manage a divestment campaign targeting strategic buyers, who would be prepared to continue servicing the Business’s clients while retaining its loyal staff.

The Business Sales Strategy

As an acquisition, BusinessWorks presented an attractive bolt-on opportunity for another business and featured an established customer-base delivering recurring revenues and strong gross margins. Looking forward, the Business anticipates continued strong uptake of its managed services offering, being well-positioned in the context of strong demand drivers projected for the IT infrastructure and managed services sectors and as regards broader industry & technology trends.

Johnsons Corporate’s custom research & marketing focused on commercial enterprises in the Australia’s IT Services sector as a primary market and also covered a number of other related technology services & product supply sectors. Johnsons ran a proactive direct marketing campaign that uncovered +30 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 14 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 Related Trade Buyer

Based in NSW, the acquirer, Hal Group, is a complete IT services company that offers a wide range of solutions to the SME, corporate and government sectors. The acquisition presented an opportunity to extend its geographic reach to include Victoria as well as to expand its managed services offering.

Metco Industrial acquired by Thoroughclean Australia

THE DIVESTMENT CAMPAIGN

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 Business 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.

(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 Related Trade 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.

Mayneline Kitchens & Joinery acquired by an Undisclosed National Construction Group

THE DIVESTMENT CAMPAIGN

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 being secured within 14 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 Strategic Buyer

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.

Superior Activewear purchased by Gildan Inc.

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Superior Activewear (“SAW”) was a market leading importer & national distributor of premium printable apparel, which it supplied to a wide range of Australian wholesalers as well as to online resellers. Founded in 2004, the Business quickly attained a dominant position in the domestic supply of printable t-shirts, building a customer-base of +2,700 on-sellers. The Business’s strengths lay in its stable of globally recognised brands, for whom it acted as the sole Australian distributor, and in its highly efficient distribution infrastructure. Streamlined web-based ordering and just-in-time warehousing & logistics combined to provide customers with the product quality and fast turnaround times demanded in the events, promotional merchandise, and workwear sectors amongst others. Modern warehousing facilities stocked over 1,000,000 t-shirts, with capacity for additional growth. Run under management, the Business featured an impressive growth record and strong revenues.

After more than 30 years in the industry and ready to transition into retirement, the Directors engaged Johnsons Corporate as specialised mid-market business brokers to assist with a national divestment campaign. Having positioned the Business for further growth, the owners sought a strategic trade buyer capable of leading the Business on its next phase of development.

The International Sales Strategy

For potential acquirers this represented a highly successful enterprise, generating strong year-on-year sales growth and offering sophisticated national distribution capabilities. It presented a rare opportunity to leverage a trusted brand, premium product range and loyal customer-base into new product and market segments.

Johnsons Corporate’s custom research and marketing focused on Australian Promotional Goods wholesalers as a primary market. Related markets comprised other wholesale sectors, including Textiles, Clothing, Footwear and General Wholesalers as well as a selective shortlist of private equity & financial buyers. Johnsons ran a proactive direct marketing campaign that uncovered 28 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 16 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 Related Traded Buyer

The purchaser was the major supplier to the Business. Gildan Ltd is a world leader in clothing manufacturing, headquartered in Canada and managing a diversified portfolio of company-owned brands. It owns and operates a number of large-scale manufacturing facilities and distributes its products to global markets through both retail and printwear channels. This acquisition presented an opportunity to establish a directly controlled distribution foothold in the Australian marketplace.

Elsie+Betty Design acquired by WG Architects

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Elsie+Betty Design (“E+B”) is a Melbourne-based boutique interior architecture and design consultancy, specialising in premium commercial fit-outs for a diverse range of industry sectors including: hotel, hospitality, retail, financial services, office accommodation, aged care and education. Its track record includes projects ranging from minor refurbishments through to multi-million dollar refits – from purely experiential design spaces to rigorously crafted facilities that demand a combination of functionality, IT integration, ergonomics and special materials for regulatory compliance. Established in 2004 and based in the iconic Block Arcade on Collins Street, the Business quickly evolved from a two-person studio to a team of six qualified designers. It successfully grew in a highly competitive market, demonstrating a capacity to build a blue-chip customer-base and to diversify into new sectors. Over the 5 years to FY15, the Business enjoyed exceptional revenue growth, combined with consistent profitability. That performance was a reflection of its ability to deliver innovative interior environments that enhance productivity as well as user experience.

By 2015 and with its excellent brand reputation, proven track record and loyal corporate clientele, E+B was poised to expand across the Australian marketplace. The directors Valentina Kopilas and Kristine Slawinski appointed Johnsons as specialist mid-market business brokers to assist with selling the Business, undertaking a national divestment campaign to find an acquirer that could help take the Business to its next level of growth.

The Business Sales Strategy

For potential buyers this represented an opportunity to gain or extend a foothold in the growing commercial fit-out sector through the acquisition of a recognised brand, an experienced & effective team, and a premium customer-base. At the same time, consistently high levels of repeat business and client referrals supported prospects for future growth and expansion.

Johnsons Corporate’s custom research & marketing focused on Commercial Interior Designers, Commercial Architects, and Major Commercial Fit-Out companies. Johnsons ran a proactive direct marketing campaign that uncovered 10 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 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 Strategic Trade Buyer

WG Architects is an integrated design practice based in Brisbane that offers architectural, interior design and master-planning services to a range of market segments, including: multi-residential, commercial, industrial, retail and private homes. This acquisition dovetailed with its growth strategy by broadening its commercial offering to incorporate interior design.

Paramount Safety Products acquires Pratt Safety Systems

THE ACQUISITION PROGRAM

Our Client – The Buyer

Headquartered in Perth, Paramount Safety Products is the name behind the well-known Prochoice brand of industrial safety gear. Servicing Australian and overseas customers for over 20 years, the Business acts as a manufacturer and distributor of personal protective equipment (“PPE”), which it supplies to a wide range of industry sectors. By 2015 Paramount was the third largest wholesaler/supplier of PPE in Australia – turning over +$50 million and operating a national network of warehouses located in WA, NSW, VIC, QLD as well as New Zealand.

Aiming to position Paramount as a leading Australian, one-stop supplier of quality industrial products – distributed throughout ANZ and exported across the Pacific Rim and beyond – the board of directors determined the Business should pursue future growth through strategic acquisitions. Specifically it mandated the diversification of the product range in addition to broadening the customer base and increasing revenues. Being well aware of the pitfalls of managing acquisitions internally, Paramount’s directors sought advisors to undertake an acquisition campaign on their behalf. They engaged Johnsons as specialist mid-market business brokers to provide expert assistance, covering the identification and qualification of suitable targets, the management of price expectations, and the strict oversight of the exchange of information between multiple stakeholders.

The Acquisition Strategy

Johnsons worked to a clear acquisition brief. The ideal target was a business that would allow Paramount to leverage its national infrastructure and management team, while diversifying its product offering. Specific target attributes included: exposure to the industrial products sector, a portfolio of long-term customers, experienced management and staff, and a turnover range of $2M to $20M.

Custom research & marketing spanned a number of sectors complementary to Paramount’s core focus on Industrial Personal Protection Gear. Johnsons ran a proactive direct marketing campaign that uncovered 19 qualified, off-market acquisition targets. Further vetting and negotiations with a shortlist of preferred targets resulted in the execution of an Agreed Terms Sheet between the buyer and its top 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

Established over 40 years ago and based in Victoria, Pratt Safety Systems is a private, Australian family-owned business. For this well-known supplier of industrial safety goods, being acquired offered the Business access to national distribution infrastructure. In turn it could offer the purchaser a loyal customer base and complementary product range, including: dangerous goods safety cabinets, emergency showers & eye wash stations, spill containment, stormwater management, gas cylinder storage cages, and safety signs.

Market Sports Online sold to GPI Group

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

A Melbourne-based family business, Market Sports Online (MSO) is Australia’s leading, authorised reseller of AFL merchandise. It distributes genuine AFL-endorsed products to consumers via its website, which enjoys a ‘page 1’ Google ranking for popular industry keywords. The Business stocks the largest range of AFL products in Australia, with more than 180 product lines covering a broad demographic that spans adult males and females, youths, babies and even pets. It holds strong relationships with AFL merchandise suppliers – a small group of specially licensed manufacturers, who form part of a supply chain tightly controlled by the AFL. MSO’s strong market positioning together with its effective marketing activities and stock management systems enabled fast growth since the Business’s establishment in 2012. Three years later it had achieved significant success in terms of customer base and revenue growth.

However, by 2014 demand had outstripped MSO’s capacity, and further growth was constrained by a lack of capital. The owners sought to identify a strategic suitor to assist the business – particularly in terms of capital investment in additional stock holdings and entry into new markets. As specialist mid-market business brokers, Johnsons Corporate was appointed to assist with a national business sale campaign to find a merger partner, while allowing the active owner to maintain his operational role in the Business.

The Business Sales Strategy

For prospective acquirers MSO represented a profitable growing business, featuring an established B2C online channel with over 21,000 unique customers. Of those, 17,000 were active and welcomed ongoing email campaigns. Additionally, future growth strategies were already in place, including: an NRL brand extension; entry into B2B sales of sport merchandise to schools, hotel groups, casinos, football clubs and car dealers, and; a rebranded web, social media, & loyalty program plan.

Johnsons Corporate’s custom research & marketing primarily focused on online &/or bricks-and-mortar Sporting Good Retailers and Wholesalers. Secondary or related markets included multi-channel online &/or bricks-and-mortar consumer retailers. Johnsons ran a proactive direct marketing campaign that uncovered 12 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 16 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 Strategic Trade Buyer

The purchaser, GPI Corporate (a division of GPI Group), is a leading Australian supplier of Fully Integrated Promotional Marketing Solutions to Australian businesses. Alongside its established online distribution channel for promotional merchandise and apparel, this acquisition facilitates GPI’s move into online business-to-consumer channels – boosted by the strong AFL brand.