Private equity firm Affinity Equity Partners is among the firms planning a bid for Australian meat products company Primo Smallgoods, Reuters reported. The takeover could be worth up to 900 million Australian dollars ($910 million). Private equity firms Archer Capital, CHAMP Private Equity and Pacific Equity Partners are also planning bids, Reuters said. Primo, which is family-owned, is Australia’s largest producer of ham, bacon and other meat products.
(Reuters) – Affinity Equity Partners is among the private equity firms planning to bid for meat products specialist Primo Smallgoods, an asset that could be worth up to A$900 million ($910 million), two sources with direct knowledge of the matter told Reuters on Friday.
Private equity firms Archer Capital, CHAMP Private Equity and Pacific Equity Partners were also preparing bids for the company, the sources said.
Primo, a private business that is majority family-owned, is Australia’s largest producer of ham, bacon and other meat products according to its website.
The company had hired Macquarie Capital to run a dual-track IPO and sales auction, and had sent invitations for indicative bids to ten potential investors, the sources said.
The 10 – seven private equity firms and three strategic bidders – had received a long teaser from Macquarie, but potential buyers were awaiting financial details before firming up bids, the sources said.
No deadline had been set for indicative bids and firms were still waiting to receive an information memorandum, the sources said.
With EBITDA (earnings before, interest, tax, depreciation and amortisation) of about A$100 million, the sources said the entire company could be sold for eight to nine times EBITDA, or about A$800-900 million.
Affinity, Archer and PEP were not available for immediate comment. CHAMP declined to comment. The sources were not authorised to talk to the media. Primo was not available for immediate comment. The sources were not authorised to talk to the media. (Additional reporting by Victoria Thieberger and Michael Smith) (Editing by Chris Lewis)