Pan Abrasives acquired by Abrasiflex

INDUSTRIAL PRODUCT DISTRIBUTION - ABRASIVE BLASTING EQUIPMENT

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Pan Abrasives (Aust) Pty Ltd is an importer and wholesale distributor of abrasive blasting equipment, including parts & accessories, and abrasive media consumables. Owned since 1997 by the Singapore-based PanBlast Pte Ltd, the Business served as its parent’s exclusive Australian distribution arm for PanBlast™ products. In addition to that key strategic partnership, Pan Abrasives also enjoyed other supplier agreements that had been in place for more than 30 years as it serviced a broad range of industry sectors. At the time of sale the Business had been trading since 1954 with its head office located in leased premises in Campbellfield, Victoria. It had achieved consistent revenues over the previous 4 financial years and enjoyed an excellent reputation for reliable, innovative and fit-for-purpose products.

In 2013 PanBlast Pte Ltd deemed its global distribution network as non-core to its manufacturing operations. As part of a strategy to refocus on manufacturing as well as distributor support, the Business engaged Johnsons Corporate as specialist mid-market business brokers to divest its Australian distribution interests. The vendor’s intention was to then continue its distribution and product representation arrangements with the new owner of Pan Abrasives.

The Business Sales Strategy

The divestment represented an attractive opportunity for potential acquirers. Featuring a strong Australian management team, an established reseller base, and a globally recognised brand, Pan Abrasives’ future growth was supported by strong demand drivers for its products across a range of industry sectors as well as multiple opportunities for expansion into new underserviced geographic territories and into new industry sectors.

Johnsons Corporate’s custom research & marketing focused on related businesses specialising in Industrial Product Manufacturing &/or Distribution as well as those in Industrial Equipment Distribution. Johnsons ran a proactive direct marketing campaign that uncovered 11 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer and backup buyer, with Offer and Acceptance secured within 24 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

Abrasiflex is one of Australia’s leading suppliers of industrial abrasive products with warehouses in Brisbane, Sydney, Melbourne, Perth, and Adelaide. It specialises in the distribution & sale of industrial abrasives for the wholesale, trade and retail sectors. The acquisition served to further strengthen Abrasiflex’s competitive position in the Australian market.

What Our Client Had to Say

"Given the logistical hurdles associated with the sale of this business asset from our Singapore head office, it was imperative that we engaged an advisor that would ensure our interests were being represented capably and efficiently in Australia. The experience of the Johnsons Corporate directors combined with their commitment, professionalism and strategic advice provided to the project, resulted in a successful outcome for all stakeholders."Ed Lim, Director - Panblast Abrasives

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