They say good things come in threes. And mid-market private equity firm Next Capital has done its bit to make sure that holds true, closing a third deal for its $300 million-odd fourth fund last week.
Street Talk understands Next Capital has bought a 51 per cent stake in supply chain, property and project management services business TM Insight, as the company’s founders Travis Erridge and Milan Andjelkovic sold down their holdings.
TMI has 50 staff across four offices in Sydney, Melbourne, Brisbane and Singapore, and works with clients including BMW, Kathmandu, Woolworths, Asahi and Bunnings to streamline their supply chains.
The Next Capital deal gave TMI an implied enterprise value of about $60 million, which was five times its earnings. The founders plan to use the new equity to expand TMI’s offering into Asia, from a Singaporean launchpad.
Next Capital worked with KPMG and Talbot Sayer on the purchase, while TMI tapped Equity Advisory.
The stake will sit in Next Capital’s fourth fund, which is on track for a final close at just above the $300 million mark in coming weeks.
The John White and Patrick Elliott-led firm has already tucked away two other deals into the new fund, acquiring a majority stake in health roll-up InterHealthcare for $100 million last December and purchasing Silver Chef’s hospitality business three months before that.
The buyout firm also sold leisure and entertainment company Funlab – which was housed in its third fund – to fellow sponsor Archer Capital for about $230 million,
As part of the TMI acquisition, two Next Capital directors will join TMI’s board. However, the management of the company – led by founders Erridge and Andjelkovic – will stay the same…see full article.
