Our Client – The Vendor
Established in 2003, Campaspe Irrigation (“CI”) provides turnkey solutions to regional Victoria. The Business differentiates itself through a highly technical skill-base and proprietary project management methodologies. It is the dominant player in the Goulburn Murray Irrigation District (“GMID”), servicing a customer base that includes corporate and private agri companies as well as agri syndicates – private land owners brought together by CI to facilitate the laying of shared irrigation infrastructure. The Business also supplies irrigation solutions to the VIC Civil Construction Industry, its long track record of delivering major agri projects having enabled its entry into a new market sector. CI’s multiple revenue streams produce stable revenue growth and generate high profitability. Future earnings are underpinned by significant government funding for major infrastructure upgrades in the GMID, designed to improve water efficiency and lower end-user costs.
In mid 2014, CI’s owners sought to to focus their energy and resources towards the development of a new venture before their retirement. They engaged Johnsons Corporate as business brokers specialising in mid-sized businesses to facilitate the sale of the Business to a new owner.
The Sales Strategy
For an acquirer Campaspe Irrigation represented an established business strategically located in a high demand region. With an experienced management team and long serving workforce, the Business is well positioned to win major works as well as smaller flow-on projects. Other features included a strong pipeline of forward orders as well as a diverse customer base, unique IP and a recognised brand. The Business offered strong prospects for future organic growth and also opportunities to further build its footprint in the civil construction sector.
Johnsons Corporate’s custom research & marketing focused on a core market of Commercial Irrigation, Water Treatment and Civil Construction Companies across Australia. Targets in related markets comprised manufacturers & distributors of irrigation equipment. Johnsons ran a proactive direct marketing campaign that uncovered 23 qualified, interested parties. Further vetting and negotiations resulted in Offer and Acceptance being secured with Campaspe’s preferred acquirer.
The purchaser, Darling Irrigation, a growing national company seeking to grow its distribution platform via acquisition, came from the primary market target list of irrigation companies. It provides irrigation, watering and water efficiency solutions to the agricultural, mining, civil construction and domestic sectors.