Anchorage Capital Partners Announces Closing of A$350 Million For Its Third Fund

Anchorage Capital Partners Announces Closing of A$350 million for its Third Fund

Third Special Situation Fund Capped at A$350 million

Sydney, Australia (November 30, 2017) – Anchorage Capital Partners (“Anchorage”) is pleased to announce the closing of its third institutional fund, Anchorage Capital Partners Fund III (“ACP III”) at A$350 million, approximately three months after initial launch.

ACP III was considerably oversubscribed, with demand exceeding the fundraising target, attributable to continued strong support from existing investors combined with significant interest of new investors.

The successful raise of Fund III, is a validation of our niche in the turnaround space and the value we bring through our operationally focussed programs.  A major strength of Anchorage is its team, which is fundamental to our performance.

Anchorage maintained the strong local market support evidenced in prior fundraising, with over 40% of Fund commitments sourced from Australian institutions.  Offshore Limited Partners, comprising a select group of institutional investors from Asia, Europe, Middle East and the U.S., provided the balance of the commitments.

Consistent with the Anchorage Capital Partners Fund I and II mandates, Fund III will seek special situations where it can make controlling investments in underperforming Australasian and Southeast Asian businesses, with enterprise values between A$30 million and A$250 million. Anchorage believes that the middle market will continue to provide a number of attractive turnaround and operational opportunities, throughout the Investment Period of Fund III.

“The fundraising of ACP III has been a great success and we are thankful for the continued support of our existing investors, and extremely pleased with the quality of new investors we welcome into Fund III.  We are very pleased to close the fund in such a short time frame and appreciate all the hard work make this process so efficient. We look forward to making investments with our third fund, for which we see many attractive opportunities.” said Simon Woodhouse, Managing Director.  “We have developed a wonderful team, fully committed and aligned with the Anchorage DNA and its investment principals”, he added.

MVision Private Equity Advisers acted as the global strategic fundraising adviser for Anchorage. Minter Ellison acted as legal adviser and Ernst & Young acted as tax adviser to Anchorage.

 

Background

Anchorage Capital Partners (“Anchorage”) founded by Phil Cave and Daniel Wong, and now co-led by Phil Cave, Daniel Wong, Simon Woodhouse and Callen O’Brien is a dedicated private equity special situations manager formed in 2007, focused on the Australian and New Zealand markets and selectively in Southeast Asia.

Anchorage takes an intensely hands-on and proactive approach to implementing its operational plans, including by leading newly created Turnaround Committees at each portfolio company.

The Managing Directors each have over 20 years of experience in private equity and direct commercial experience in management, strategy formulation, finance, accounting and operations. As such, the Firm believes it is one of the most experienced dedicated special situation managers active in the Australasian and Southeast Asian markets.

Anchorage Capital Partners Acquires Contract Resources

01 November 2017

Anchorage Capital Partners today announced it has completed the acquisition of Contract Resources from ASX listed Bapcor Limited.

Contract Resources is a market leading provider of critical maintenance services to the oil, gas, energy and infrastructure sectors in Australia, New Zealand, South America and the Middle East. 

Anchorage has appointed a new Chief Executive Officer, Adam Machon. Adam has highly relevant global contracting experience across the oil, gas and infrastructure sectors.  For the last 10 years Adam has held a number of senior roles at Transfield Services (now Broadspectrum) including managing their resources and energy division in North America as well as senior management roles in Australia.

Adam will be supported by continuing management shareholders, Andy Wells (Chief Operating Officer) and Gray Gardner (Project Director).

Anchorage Managing Director, Callen O’Brien, said “Contract Resources has a leading brand and strong market position supported by its loyal employees and long term customer relationships. We are excited for the future prospects of the business.”

Anchorage will be represented on the Board of Contract Resources by Callen O’Brien and Phil Cave.

About Contract Resources
Contract Resources was founded in 1989 and has grown to become a market leading provider of critical industrial waste management and maintenance services to the oil and gas sector in Australia, New Zealand, South America and the Middle East.  Contract Resources specialised service offering includes: catalyst handling, environmental and industrial services and mercury waste treatment.  The business currently delivers its services to the refinery, LNG, petrochemical, renewable energy and resources sectors.

Contract Resources is currently completing Australia’s only mercury waste treatment plant capable of the safe treatment of mercury waste generated from oil and gas production.

About Anchorage Capital Partners
Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential.  The funds managed by Anchorage have $450 million in committed funds.  Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.

Anchorage Capital Partners Acquires TJS Services Group

Anchorage Capital Partners ("Anchorage") today announced it has completed the acquisition of TJS Services Group ("TJS").

TJS provides facilities maintenance and cleaning services for customers across Australia in the government, hospitality, education, healthcare, corporate and entertainment sectors.

TJS Chief Executive Officer Ben Bayot, said "TJS is very proud of its reputation for delivering high quality services for its customers across Australia. We are excited to work with an operationally focused capital partner that shares our strategic vision for the business."

Anchorage Managing Director, Simon Woodhouse, said "We look forward to working with Ben and the TJS team to continue their journey towards becoming a leading diversified facilities services provider in Australia."

Anchorage will be represented on the Board of TJS by Simon Woodhouse as Chairman and Daniel Wong as Non-Executive Director.

About TJS

TJS provides facilities maintenance and cleaning services for customers across Australia. The business provides services to customers in the government, hospitality, education, healthcare, corporate and entertainment sectors. TJS directly employs over 400 staff and is headquartered in Sydney, Australia.

About Anchorage Capital Partners

Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential. The funds managed by Anchorage have $450 million in committed funds. Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.

Anchorage Capital Partners Acquires Affinity Education Group

Anchorage Capital Partners announced today that it has completed the acquisition of Affinity Education Group (Affinity).

ANCHORAGE CAPITAL PARTNERS ACQUIRES AFFINITY EDUCATION GROUPAffinity is one of the largest child care operators in Australia, with a portfolio of more than 160 centres. Affinity’s key focus is providing exceptional child care and education services.  

Anchorage Managing Director and Chairman of Affinity, Daniel Wong, said “Anchorage is pleased to have completed the acquisition of the Affinity Education Group and we are excited by the significant potential for the business.  Our focus will remain first and foremost to provide exceptional child care and education services.  We look forward to working with the Affinity team to enhance operations and achieve the vision of becoming the leading child care provider in Australia.”

Affinity’s operations are led by Chief Executive Officer, Tim Hickey.  Tim was previously Chief Executive of Australian Retail and Distribution for Fletcher Building, Diva (a fast fashion jewellery business), Midas Australia and held senior executive roles with Pepsico Restaurants and Yum Brands.  

Anchorage will be represented on the Board of Affinity by Daniel Wong as Chairman, and Callen O’Brien and Simon Woodhouse as Non-Executive Directors.

About Affinity 

Affinity is one of the largest child care operators in Australia, with a portfolio of over 160 centres. Affinity’s key focus is providing exceptional child care and education services.  We recognise and value our moral obligation to act with professional integrity as advocates on behalf of children. We strive to provide a safe, respectful and compassionate environment that recognises children as people with valuable views and interests to ensure children feel noticed, heard and understood while receiving the best possible educational program to support their emotional and social development.

About Anchorage Capital Partners

Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential.  The funds managed by Anchorage have $450 million in committed funds.  Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.

Mark Group Acquires A Market Leader In Commercial And Industrial Solar PV Installations In Australia

Anchorage Capital Partners is pleased to announce that its investee company, Mark Group Holdings (Mark Group), has today completed the acquisition of Solgen Group (Solgen).

Solgen was formed in 2008 and is a market leader in commercial and industrial solar PV installations in Australia, with many solar installations completed for high profile commercial and Government clients. 

The acquisition of Solgen is highly complementary to Mark Group, providing exposure to the high growth commercial and industrial solar sector. “This acquisition presents an opportunity to capitalise on a dynamic market and realise our strategic intent to further strengthen our brands as the leading providers of quality renewable energy solutions in the region”, said David Brown, CEO of Mark Group.  

Solgen has an experienced and highly regarded leadership team, led by founders David Naismith and Joe Coco, who will remain as Directors of Solgen and join the Senior Executive Team of the combined Group. 

“Today’s announcement is exciting news for the Solgen team, our customers and our business partners. We share in the passion and vision of the Mark Group team to be the leading renewable energy provider in the region” said David Naismith.

The Solgen investment further strengthens Anchorage’s investment and commitment to renewable energy alongside Mark Group.  Phil Cave, Mark Group Chairman said, “We are delighted to bring together Mark Group and Solgen as we set about creating a high quality, sustainable business, in an exciting industry”.

About Solgen

Solgen was formed in 2008 and is a market leader in commercial and industrial solar PV installations in Australia, with many solar installations completed for high profile commercial and Government clients. 

About Mark Group

Mark Group was formed in 2009 and has established itself as one of the leaders in the residential solar PV installation segment, with over 21,000 energy efficiency installations completed in the past 6 years. 

About Anchorage Capital Partners

Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential.  The funds managed by Anchorage have $450 million in committed funds.  Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.

Anchorage Capital Partners Acquires Mark Group

Anchorage Capital Partners announced today that it has completed the acquisition of Mark Group Pty Ltd (Mark Group).

Mark Group is a market leader in solar photo voltaic installations, with operations across Australia.
  
Mark Group was established in 2009 as a wholly owned subsidiary of Mark Group United Kingdom (MGUK).  The business became available for sale following a restructure of the original family ownership of MGUK.

"Mark Group operates a strong platform within the solar installation sector with an established national footprint and a reputation for high quality service and products", said Anchorage Managing Director Phil Cave. "With the current focus on renewable energy sources and energy efficiency, we see significant opportunity in the business for sustainable earnings improvement."

MGA has a high quality management team who are well-known in the sector. Anchorage will be represented on the Board of Mark Group by Phil Cave as Chairman and Callen O'Brien as Non-Executive Director.

Anchorage Managing Director Callen O'Brien will chair the turnaround committee.

About Mark Group 

Mark Group was established in 2009 and was previously a wholly owned subsidiary of Mark Group United Kingdom.  The company is a market leader in solar photo voltaic installations with operations across Australia.  

About Anchorage Capital Partners

Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential.  The funds managed by Anchorage have $450 million in committed funds.  Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.

Anchorage Capital Partners Acquires Independent Children's Footwear Retailer Shoes & Sox

Anchorage Capital Partners announced that it has today completed the acquisition of Shoes & Sox Pty Ltd.

Founded in 1987, Shoes & Sox is Australia’s leading independent children’s footwear specialist. Focused on the premium childrens’ and infants’ shoe market, Shoes & Sox has a reputation for fitting expertise -“we fit feet right.” Shoes & Sox currently employs around 200 staff across 24 stores, which are located in premium Australian metropolitan shopping centres.

The acquisition of Shoes & Sox is highly complementary to Anchorage’s recent acquisition of Brand Collective. “As Brand Collective’s largest customer for Clarks shoes, the acquisition of Shoes & Sox enhances Brand Collective’s pathway to the customer and improves Brand Collective’s position in the footwear value chain”, said Simon Woodhouse, Anchorage Managing Director and Chairman of Brand Collective. “Along with the strategic value for Brand Collective, there is significant opportunity to grow the Shoes & Sox retail network in this specialty segment.”

Shoes & Sox has an experienced and highly regarded leadership team, led by Martin and Michele Tabachnik.  Martin and Michele will remain with Shoes & Sox for at least two years following completion of the sale.

“This transaction represents an exciting new phase for Shoes & Sox, providing additional scale to drive future growth,” said Managing Director Martin Tabachnik.  “Importantly, it ensures the longer-term prosperity of Shoes & Sox for our valued staff, who deliver on our mission of putting the best-fitting shoes on children’s feet.”

Anchorage will be represented on the Board of Shoes & Sox by Simon Woodhouse as Chairman and Daniel Wong as Non-Executive Director.

About Shoes & Sox

Shoes & Sox is Australia’s leading independent children’s footwear specialist.  Focused on the premium childrens’ and infants’ shoe market, Shoes & Sox has a reputation for fitting expertise -“we fit feet right.” Shoes & Sox currently employs around 200 staff across 24 stores, which are located in premium Australian metropolitan shopping centres. 

About Brand Collective

Brand Collective owns a number of iconic Australian brands including Volley, Grosby and Julius Marlow, and has exclusive licences for leading international brands including Superdry, Clarks, Hush Puppies and Mossimo.  The business sells through a combination of leading department stores and discount department store chains, as well as around 50 branded retail sites and several company owned websites.  Brand Collective also owns the Shoe Warehouse chain of discount footwear stores. 

About Anchorage Capital Partners

Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential.  The funds managed by Anchorage have $450 million in committed funds.  Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.  Anchorage has significant experience in the consumer products and retail sector, gained through successful investments including Dick Smith Holdings, Burger King New Zealand and Golden Circle.  

Anchorage Capital Partners Acquires the Footwear and Outerwear Brands of Pacific Brands Limited

Pacific Brands announced today it has signed an agreement to sell the Footwear and Outerwear businesses of its Brand Collective division to Anchorage Capital Partners.  Anchorage is also acquiring the rights to the Brand Collective name, which will be the trading name of the business going forward.  Martin Matthews, current Group General Manager of Brand Collective, will be Chief Executive Officer of the newly acquired business.  Caleb Brown, current General Manager of Strategy and Commercial Finance, will be Chief Financial Officer.  

Brand Collective owns a number of iconic Australian brands including Volley, Grosby and Julius Marlow, and has exclusive licences for leading international brands including Superdry, Clarks, Hush Puppies and Mossimo.  The business sells through a combination of leading department stores and discount department store chains, as well as around 50 branded retail sites and several company owned websites.  Brand Collective also owns the Shoe Warehouse chain of discount footwear stores.  

In partnership with management, Anchorage has developed a comprehensive rejuvenation plan for Brand Collective.  Anchorage Managing Director and Chairman of Brand Collective, Simon Woodhouse, said “Anchorage is extremely excited to announce the acquisition of Brand Collective.  The business has an enviable brand portfolio and we believe that with the right focus and investment we can establish Brand Collective as the leading house of brands in the Australasian region.  We look forward to working with Martin, Caleb and all of the employees of Brand Collective to achieve this vision.”

Joining Simon on the Board will be fellow Anchorage partner Daniel Wong, while Chris Adams, Director at Anchorage, will also assist management with the turnaround program.

Martin Matthews, CEO of Brand Collective said “I am extremely excited by the opportunity this change creates for the Brand Collective business, our brands and our people.  Under Anchorage's ownership we will have the support, freedom and investment we need to accelerate the turnaround of our business and the rejuvenation of our brands.  We look forward to partnering closely with our licensors, retail customers and suppliers to achieve our vision for the business.”

Anchorage's financing partner for the transaction is Westpac.  Minter Ellison provided legal advice and Ernst & Young acted as tax advisor.  

The transaction is expected to complete on 1 December 2014.  
 

About Anchorage Capital Partners

Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential.  The funds managed by Anchorage have $450 million in committed funds.  Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.  Anchorage has significant experience in the consumer products and retail sector, gained through successful investments including Dick Smith Holdings, Burger King New Zealand and Golden Circle.  

Sunningdale Tech Acquires First Engineering Limited

Singapore Exchange Mainboard-listed Sunningdale Tech Ltd ("Sunningdale Tech") announced today completion of the 100% acquisition of all of the issued and paid-up shares of Anchorage Singapore Holdings Pte Ltd, the ultimate

holding company of First Engineering Limited ("FEL"). The transaction values FEL at an enterprise value of US$80 million.

Headquartered in Singapore, FEL is a market leading manufacturer of precision plastic moulds and engineering components, for the automotive, consumer/IT and healthcare (medical device) business segments. FEL serves a blue chip customer base from its manufacturing and sales locations across five countries. In the preceding twelve month period ending 31 July 2014, FEL generated revenue and EBITDA of US$134 million1 and US$17.1 million1, respectively.

"In just over two years of Anchorage ownership, a comprehensive turnaround program has resulted in a fully invested, high quality and scalable business," said Anchorage Managing Director and FEL Chairman, Daniel Wong.

"Today, FEL is one of the most diversified precision plastics manufacturers in Asia, with high quality customers and exposure to attractive markets such as auto and medical devices. Strategic capital investment, including a best-in-class tooling centre in Shanghai, China, and manufacturing facility in Chennai, India, have further strengthened FEL’s design, engineering and manufacturing capabilities, to be leveraged for future growth."

Rippledot Capital advised the Board in relation to the transaction and Allen & Gledhill was FEL’s legal adviser.

Sunningdale Tech’s announcement can be viewed here.

About Anchorage Capital Partners
Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in companies which have strong and established track records, but are not achieving their full potential. The funds managed by Anchorage have $450 million in committed funds. Anchorage's partners and investment professionals have considerable experience in company management, corporate strategy, management consulting and corporate finance and have a long track record of successful partnerships with management teams.


1 Based on unaudited and unreviewed management accounts prepared by FEL. Revenue does not include any contribution from FEL’s joint venture partner, while EBITDA includes proportionate contribution from FEL’s joint venture company

Ruralco Holdings Acquires Total Eden

Australian Securities Exchange-listed Ruralco Holdings Limited (“Ruralco”) today announced it had completed the acquisition of 100% of Total Eden Holdings Pty Ltd (“Total Eden”) for a purchase price  of $57.4 million.

Total Eden provides end to end water management solutions across its two trading divisions, being  Networks and Services. The Networks division currently comprises 37 retail stores and 4 distribution  centres in WA, NSW, QLD, VIC and SA.  The Services division provides water solutions to a broad  range of customers including government, agriculture and mining across Australia and New Zealand.  

“Together with the Total Eden management team, Anchorage have successfully steered the business  through a challenging period of turnaround, business integration and performance improvement,”  said Anchorage Managing Director and Total Eden Chairman, Daniel Wong.  

“Our focus on enhancing the company’s internal systems and controls, products, brand and culture  has underpinned a sustained increase in financial performance.  Total Eden today is a market leading  water solutions business with established national distribution footprint and end to end project  delivery capabilities.” Ruralco’s announcement can be viewed here.

 

About Anchorage Capital Partners
Anchorage Capital Partners is a specialist Australian private equity firm that focuses on investing in  companies which have strong and established track records, but are not achieving their full  potential.  The funds managed by Anchorage have $450 million in committed funds.  Anchorage's  partners and investment professionals have considerable experience in company management,  corporate strategy, management consulting and corporate finance and have a long track record of  successful partnerships with management teams.

Dick Smith Lists on ASX

MEDIA RELEASE

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS

Dick Smith lists on ASX - Major step for iconic consumer electronics business

Wednesday, 4 December 2013

Dick Smith Holdings Limited (Dick Smith) (ASX: DSH) will today be admitted to the official list of the Australian Securities Exchange (ASX), with trading in its fully paid ordinary shares (Shares) commencing following strong demand in its initial public offering (IPO).

The Shares, which were offered at a price of $2.20 each, implying a market capitalisation of the company of $520 million, will debut on ASX at 12.00pm (Sydney time).

Nick Abboud, Managing Director and CEO of Dick Smith, said: “Today is a major step in the evolution of our company, 
one that has been a fixture in the retail community in Australia and New Zealand for decades.

“We have been greatly encouraged by the institutional and retail shareholder response to the IPO and the strong 
demand for Shares. This has allowed us to assemble a high quality register of institutional Shareholders.

“However, we are 100% aware of the responsibility we have to deliver on behalf of our Shareholders. They want to see 
us meet our objectives and to deliver sustainable profit and growth.”

Anchorage Capital Partners, a turnaround and special situations private equity firm, will remain as a key Shareholder in Dick Smith by retaining an interest of 20%. Dick Smith management will hold 11.5% of the Shares issued.

Dick Smith Chairman and Anchorage founder, Phil Cave, paid tribute to the transformation program that Nick Abboud 
and the management team had driven at the company.

“Working with Nick has been a great partnership for us. A tremendous amount of work has gone into driving change and 
getting Dick Smith to the point that it can become a listed company,” Mr Cave said. “There is still more to do, of course, and Anchorage is retaining a significant Shareholding as a sign of our confidence in the company’s forecast financial performance.”

Goldman Sachs and Macquarie Capital were joint lead managers, joint bookrunners and underwriters to the Offer. 
Aquasia advised the Board in relation to the Offer and Minter Ellison was Dick Smith’s legal adviser.

Anchorage Capital Partners Closes Fund II

ANCHORAGE ANNOUNCES CLOSING OF ANCHORAGE CAPITAL PARTNERS FUND II AT A$250 MILLION.

Second Turnaround Fund Capped at A$250 Million.

Anchorage Capital Partners (“Anchorage”), the Sydney based private equity firm focusing on special situations and turnaround investment in the Australian, New Zealand and Southeast Asian markets, today announced the A$250 million first and final closing of Anchorage Capital Partners II, (the “Fund” or “Fund II”). Significant interest from both existing and new investors meant that the Fund was oversubscribed and capped at A$250 million.

Anchorage maintained the strong local market support evidenced in prior fundraising efforts, with over 50% of Fund commitments sourced from Australian institutions. Offshore Limited Partners, comprising a select group of institutional investors from Asia, Europe and the U.S., provided the balance of the commitments.

Consistent with the Anchorage Capital Partners I investment mandate, the Fund will seek controlling investments in underperforming Australian, New Zealand and Southeast Asian businesses, with enterprise values typically between A$50 million and A$250 million. Anchorage believes that the middle market will continue to provide attractive turnaround opportunities throughout the Investment Period of Fund II and beyond.

Anchorage Partners Michael Briggs, Phil Cave, Daniel Wong and Simon Woodhouse agreed that closing the Fund in less than six months despite the challenging fundraising environment was a terrific achievement. The Team sincerely appreciates the support of existing investors and welcomes new investors to the Fund.

To date, Anchorage Capital Partners I has made six investments and distributed over A$60 million to Fund I investors.

MVision Private Equity Advisers acted as global placing agent for both Fund I and II. Minter Ellison acted as legal adviser and Ernst & Young acted as tax adviser to Anchorage.

Background

Anchorage Capital Partners (“Anchorage”) is a dedicated private equity special situations manager formed in 2007, focused on the Australian and New Zealand markets and selectively in Southeast Asia.

Anchorage takes an intensely hands-on and proactive approach to implementing its turnaround plans by leading the Board of a portfolio company and driving newly created Turnaround Committees at each portfolio company, which combines Anchorage Investment Team members, the CEO, CFO and other senior managers of portfolio companies. The Partners each have extensive experience in private equity, as well as direct commercial experience in management, strategy formulation, finance, accounting and operations. 

Anchorage Capital Partners Fund I was closed on 31 March 2010 with total committed capital of A$200 million. 

Anchorage Capital Partners Acquires Dick Smith Electronics

Anchorage Capital Partners today announced that it has entered into an agreement with Woolworths Limited to acquire 100 per cent of Dick Smith Electronics, with the transaction expected to complete by November 2012. 

Dick Smith is an iconic Australian consumer electronics retailer that was founded in 1968 by entrepreneur Dick Smith and became part of the Woolworths group in 1980. Today Dick Smith employs more than 4,500 people across 325 stores in Australia and New Zealand and in fiscal year 2012 reported sales of $1.6 billion.

The transaction has been conservatively structured so that Dick Smith will emerge from the sale supported by a strong balance sheet with considerable asset backing and no core debt. As part of the purchase, Anchorage will also support the business by providing additional cash investment and guarantees. It is Anchorage's intention to maintain the current network of 325 stores across Australia and New Zealand and to consider selective network expansion over time where appropriate. 

Phillip Cave, Chairman of Anchorage commented: “Anchorage is impressed with the underlying quality of the business and sees Dick Smith as an ideal fit for our investment mandate of acquiring established businesses with strong brands that can benefit from Anchorage's proprietary approach to operational performance improvement. We're extremely pleased to have entered into the agreement with Woolworths and are confident in the long term success of the business.”

Anchorage has appointed Mr Nick Abboud as Chief Executive Officer, effective upon completion of the acquisition. The Dick Smith Board will comprise; Mr Phillip Cave as Chairman and Mr Michael Briggs, a Partner at Anchorage, together with Mr Nick Abboud and Mr Bill Wavish.

Mr Abboud, who brings 24 years' experience in the Australian retail sector, recently announced his resignation from retailing group Myer Australia, where he has worked since 1993. He was most recently Executive General Manager Operations, responsible for the overall strategic planning and direction ofMyer's store operations from conceptualisation to delivery of operational strategies. His previous positions included Director of Store Operations and Director of Retail Stores. Nick began his retail career on the shopfloor and worked his way through one of Australia's largest and most respected organisations to the senior echelons of management, leveraging his detailed, hands-on understanding of all facets of retail operations. 

Mr Wavish is a retail industry veteran whose prior positions include Executive Chairman of Myer, Finance Director of Woolworths and Supermarkets Director of Woolworths. Mr Wavish currently serves as Chairman of Bendon Ltd and Chairman of the Vodafone Warriors.

Nick and Bill have previously worked together at Myer, effecting significant performance improvements under private equity ownership before Myer's IPO in 2009. 

Commenting on his appointment, Nick said “I am delighted to be joining this iconic Australian retailer. Dick Smith is a well regarded brand supported by an experienced team and an excellent national footprint. Anchorage and I see great potential in the Dick Smith business and I look forward to working with the team to fully realise these opportunities.”

More details 
Michael Briggs, Partner
Email: anchorage@anchoragecapital.com.au 

Anchorage Capital Partners

Anchorage was formed in 2007 and currently has A$200 million committed capital. Anchorage targets investments in businesses with a strong brand and leading market position, which are materially underperforming. Anchorage drives the turnaround program directly through active involvement in the business, leveraging its significant experience in operational management, business leadership, corporate finance and, strategy.

Dick Smith Electronics Pty Ltd

Dick Smith is an iconic Australian consumer electronics retailer that was founded in 1968 by entrepreneur Dick Smith and became part of the Woolworths group in 1980. Today Dick Smith employs more than 4,500 people across 325 stores in Australia and New Zealand and in fiscal year 2012 reported sales of $1.6 billion.

“Anchorage is impressed with the underlying quality of the business and sees Dick Smith as an ideal fit for our investment mandate of acquiring established businesses with strong brands that can benefit from Anchorage's proprietary approach to operational performance improvement.”

Phillip Cave, Chairman

Anchorage Capital Partners Fund I Completes its Investment in First Engineering

On 8 June 2012 Anchorage Capital Partners, an independent Australian private equity manager, announced the signing and completion of its investment in First Engineering Limited.  Established in 1979, First Engineering is headquartered in Singapore, and is one of the leading precision plastic injection moulding (PIM) manufacturers serving multi-national corporations in Asia.

In August 2007, First Engineering was privatised, following privatization the performance of the business materially declined due to several factors, including high leverage under the acquisition structure, combined with soft global demand flowing from the global financial crisis.

First Engineering subsequently defaulted on its senior debt facilities due to breach of covenants, and was taken over by the Senior Lenders through a credit bid in September 2009, ensuring the survival of the business.  Anchorage identified the business through its Asian network, and agreed indicative terms in late 2011, including a period of exclusive due diligence, ultimately leading to completion in June 2012. 

First Engineering has six production facilities in Malaysia, China (Shanghai, Suzhou, Guangzhou), Singapore and India, with more than 2,500 employees.  The business designs, engineers and produces components for business machines, hard disk drives, automobiles and medical devices

Daniel Wong, Partner of Anchorage and new Chairman of First Engineering, said: "Despite the stress placed on the business over an extended period of time the underlying quality of the business remains.  We have identified a large number of turnaround initiatives that will markedly improve earnings.  The turnaround program has already commenced, with Anchorage well entrenched in the business.”  Anchorage will focus on improving the core operations of the business and continue diversification into the healthcare and automotive sectors.  Following completion of the sale process the business has a substantially improved balance sheet.

Chief Executive Officer, Brian Smith who was appointed in June 2011, and will continue with the business, said: “First Engineering now possesses one of the most experienced management teams of any PIM manufacturer within the Asian plastics industry. The combination of First Engineering's management team and Anchorage's turnaround focus will create a strong strategic combination and elevate First Engineering to the top of its competitive set.”  Brian has already made significant progress in stabilising the business, and will drive the turnaround program in partnership with Anchorage.

During the due diligence phase Anchorage sought the appointment of Neo Age Seng as Chief Operating Officer.  Neo was appointed in May 2012 and has extensive experience in PIM operations.  Neo is extremely well known to Anchorage having previously partnered with Anchorage in its investment in Omni Plastics. 

Daniel Wong will join the board as Chairman, along with his Anchorage colleague Phil Cave.

More details -
Daniel Wong, Partner
Email: anchorage@anchoragecapital.com.au

Anchorage Capital Partners

Anchorage was formed in 2007 and currently has A$200 million committed capital. Anchorage targets investments in businesses with a strong brand and leading market position, which are materially underperforming. Anchorage drives the turnaround program directly through active involvement in the business, leveraging its significant experience in operational management, business leadership, corporate finance and, strategy.

First Engineering Pty Limited

First Engineering has six production facilities in Malaysia, China (Shanghai, Suzhou, Guangzhou), Singapore and India, with more than 2,500 employees.  The business designs, engineers and produces components for business machines, hard disk drives, automobiles and medical devices.

Blackstone to Acquire New Zealand's Antares Restaurant Group

The Blackstone Group (NYSE: BX) announced today that its Private equity funds have agreed to acquire Antares Restaurant Group in New Zealand from Anchorage Capital Partners. Terms of the transaction were not disclosed. 

Headquartered in Auckland, Antares has the exclusive franchise development rights for the Burger King brand in New Zealand ad operates 75 Burger King(r) restaurants throughout the country. Under the leadership of the current management team, the business is in the early stages of an ambitious refurbishment program while also opening new restaurants to broaden the footprint a an increasing number of local communities across New Zealand. 

Jan Nielsen, a Managing Director in Blackstones private equity group, said: "We are extremely excited about the potential we see in Antares and the superb quality of the management team who will be our pumas to fuller develop and grove this business. Burger Ring' is a leading consumer business with an iconic brand and Moue growth prospects in the Asia-Pacific ream, and we are excited about partnering with Burger King Corporation to expand their presence in the region."

Mark Bayliss, a Partner with Anchorage Capital Partners, said, "Anchorage has enjoyed working closely with the Antares management team over the past 2 years to transform the operational and financial performance of the business and build a sustainable growth platform going forward, and we are pleased with the excellent result the sale will deliver to our investors." 

John Elliott, Chief Executive Officer of Antares, added: "I am delighted that Blackstone will be the new investor and owner of Antares. With their long term focus and drive to add value through deployment of capital and operational improvements, we believe that they are the perfect partner to work with to take Antares to the next level." 

Blackstone is one of the largest private equity investors in the world with US$38 billion in capital committed or invested in I60 separate private equity transactions. Blackstone currently has US$17 billion of available equity capital to invest in further private equity transactions.

Anchorage Capital Partners is an Australasian private equity fund focused on special situation opportunities and operational turnaround investments. 

Goldman Sachs acted as financial advisor for Blackstone with Rippledot Capital Advisers acting for Anchorage. Deloitte furthermore assisted Blackstone with financial and tax due diligence. Bell Gully and Simpson Thacher & Bartlett acted as legal advisors to Blackstone with Minter Ellison Rudd Watts acting for Anchorage. Debt financing and ongoing credit facilities to Antares are being provided by ANZ, Rabobank and Westpac. 

About Blackstone 

Blackstone (NYSE:BX) is one of the world's leading investment and advisory firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies they invest in, the companies they advise and the broader global economy. Blackstone does this through the commitment of their extraordinary people and flexible capital. Their alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds and closed-end mutual funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow us on Twitter @Blackstone. 

About Anchorage

Anchorage Capital Partners has an established track record of investing in quality businesses that are underperforming and delivering executable turnaround programmes through hands on involvement to drive performance and superior returns to investors. Further information is available at www anchoragecapital.com.au. 

Anchorage Capital Partners Fund I completes its investment in Total Eden

Anchorage Capital Partners, an independent Australian private equity  manager, today announced the completion of its investment in Total  Eden, the Water Products and Services division of Alesco Corporation  Limited. Alesco identified Total Eden as being “non-core”, and sought  to divest the division so as to focus on its remaining businesses. 

Total Eden was formed in December 2006 through the amalgamation of Total Eden Watering in Western Australia and McCracken's Water  Services based on the east coast, and was acquired by Alesco in 2007. 

The business provides water management products and services across  Commercial, Industrial and Retail markets across Australia. The branch  network comprises 38 retail sites and 10 commercial and industrial sites  in Queensland, NSW, Victoria and WA.  

Since 2007, the business has underperformed due to a range of operational and structural issues. A number of opportunities have been  identified that will enhance the performance of the business through  improving operating capabilities, strategic focus and creating an  organizational structure to support growth and target market  opportunities. 

Daniel Wong, Partner of Anchorage, said: "Total Eden is another orphan  investment, with significant scope for performance improvement. As a  part of our due diligence we identified a large number of material  opportunities that will allow for sustainable improvement in earnings as  well as the overall quality of the business.” 

Existing new management, including Chief Executive Officer, Wayne  Powell will continue with the business to drive the turnaround program.  

Daniel Wong who oversaw the transaction will join the board as  Chairman, along with his Anchorage colleague Phil Cave.

More details -
Daniel Wong
Partner
Email: anchorage@anchoragecapital.com.au

Anchorage Capital Partners

Anchorage was formed in 2007 and currently has A$200 million  committed capital. Anchorage targets investments in businesses with a  strong brand and leading market position, which are materially  underperforming. Anchorage drives the turnaround program directly  through active involvement in the business, leveraging its significant  experience in operational management, business leadership, corporate  finance and, strategy. 

Total Eden Pty Limited

Total Eden is one of Australia's largest suppliers of quality water  products and services supplying a broad range of customers, including  agricultural, domestic, commercial, industrial and mining customers. It  has 42 locations Australia wide and operates through its retail, industrial  and commercial businesses. 

Anchorage Capital Partners Fund I Completes its investment in Boral Scaffolding & Formwork

Anchorage Capital Partners an independent Australian private equity manager, today announced the completion of the acquisition of Boral Formwork & Scaffolding (BFS) from Boral Limited. The business was acquired following the completion of a strategic review by Boral which identified the business as noncore. 

Acrow operates a national network of scaffolding and formwork solutions branches, including the industry standard Acrow brand in formwork and Cuplock in scaffolding, consisting of 11 scaffolding branches, four formwork branches, and three dual formwork and scaffolding hybrid branches across Australia. The company presently holds the number three position in the overall Australian scaffolding market.

The business has been rebranded and will be known as Acrow Formwork and Scaffolding Pty Limited (Acrow). The name Acrow has been active in the Australian construction industry since 1950 and its heritage dates back to 1936, when the company was first launched in the United Kingdom. The decision to rebrand back to the grass roots of the business reflects our determination to be leaders in delivering impeccable service and providing access and safety solutions that are synonymous with the `Acrow' brand. 

Michael Briggs, Partner of Anchorage, said: "Acrow is a classic orphan investment for Anchorage, where the business was non-core to the parent and subsequently did not perform to its full potential. Acrow is a strong brand in the construction segment, with a good market position. Anchorage have identified a number of turnaround initiatives to leverage this brand and market position, as well as extract the benefits of an increased strategic focus following the decoupling from Boral.

Anchorage has put in place a new management team to be led by experienced executive, Andrew Luxton who will join the business as Managing Director. Andrew was CEO and Managing Director of Cromford Group Pty Limited prior to his appointment at Acrow. Bruce Short will also join as Chief Financial Officer, his career history includes leadership and senior finance roles with Cromford Group, James Hardie, Boral and CSR. These appointments, combined with the continuation of key existing management, provide a strong foundation to allow the business to fulfil its potential. 

Michael Briggs who oversaw the transaction will join the board as Chairman, along with his Anchorage colleagues Phil Cave and Simon Woodhouse.


More details -
Michael Briggs
Partner
Email: anchorage@anchoragecapital.com.au


Anchorage Capital Partners

Anchorage was formed in 2007 and currently has A$200 million committed capital. Anchorage targets investments in businesses with a strong brand and leading market position, which are materially underperforming. Anchorage drives the turnaround program directly through active involvement in the business, leveraging its significant experience in operational management, business leadership, corporate finance and, strategy.

Acrow Formwork & Scaffolding Pty Limited

Acrow operates a national network of scaffolding and formwork solutions, including the industry standard Acrow brand in formwork and Cuplock in scaffolding. Consisting of eleven scaffolding branches, four formwork branches, and three dual formwork-scaffold hybrid branches, the company presently holds the number three position in the overall Australian scaffolding market.

Anchorage Capital Partners Closes A$200 Million Fund

Oversubscribed Debut Fund Capped at A$200 Million 
Anchorage Capital Partners (“Anchorage”), the Sydney based private equity firm which focuses on Australian mid market special situation and turnaround buyouts, today announced the A$200 million final closing of Anchorage Capital Partners I, (the “Fund”). The strong support from new investors meant that the fund was oversubscribed and capped at A$200 million.

Anchorage secured capital commitments from best-in-class global institutional investors, asset managers, public pension plans and funds of funds from Australia and the United States. 
The Fund will seek special situations where it can make controlling investments in underperforming Australasian businesses, with enterprise values between A$50m and A$250m.

“We are delighted by the level of interest received throughout this fundraise in what was a difficult economic period”, said Phillip Cave, Founder and Chairman of Anchorage.

MVision Private Equity Advisers acted as global placing agent. Minter Ellison acted as legal adviser to Anchorage. 

Background

Anchorage Capital Partners (“Anchorage”) was formed in 2007 and specializes in special situations and performance improvement opportunities, with a focus on Australian and Asian markets.

The Anchorage team have built their private equity experience over many years, commencing with a hands on involvement in business turnarounds at the chief executive and executive level, then progressing to driving investee performance improvement from an active board level involvement.

Prior to completing its first close in July 2008, the Fund successfully invested in Golden Circle, the iconic Australian manufacturer of canned fruit and vegetables, chilled fresh and long life juices. In December 2008 Anchorage sold its investment in to H.J. Heinz achieving a gross IRR of 129% and a 2.5x multiple on the transaction.

The Funds’ current investments include Antares Restaurant Group Pty Limited, the company holding the master franchise rights to operate the Burger King system in New Zealand. The Burger King network in New Zealand currently includes 72 restaurants across the North and South Islands. The Fund also holds a strategic investment in Bisalloy Steel Limited (“Bisalloy”), listed on the ASX, Bisalloy is the only manufacturer of quench and tempered steel in Australia.

More details –
Phillip Cave
Partner

Mark Bayliss
Partner

Email: anchorage@anchoragecapital.com.au