PRIVATE equity group Archer Capital has emerged rapidly this year to become one of the largest investors in Western Australia, following its purchase of the company behind the Chicken Treat and Red Rooster fast food chains.
PRIVATE equity group Archer Capital has emerged rapidly this year to become one of the largest investors in Western Australia, following its purchase of the company behind the Chicken Treat and Red Rooster fast food chains.
Archer has partnered with Quick Service Restaurant Holdings chief executive Mark Lindsay to buy the business for a reported $450 million enterprise value.
It follows Archer’s purchase of the Brownes dairy business in March and the Gull Petroleum and Fuelfix businesses in December.
The Archer purchases are the latest in a succession of deals in which private equity investors have either bought or sold businesses in WA, including trucking company Mitchell Corp, accommodation supplier Ausco Modular, and oil and gas services company TSmarine.
The next company likely to change hands is drilling contractor Barminco, which is currently majority owned by Gresham Private Equity.
Gresham bought a majority stake in 2007 for a rumoured $300 million and is currently working towards a $600 million public share offer and stock market listing.
Like most private equity vendors, Gresham is running a two-track sales process, and could proceed with a trade sale if that delivers a better return.
However, it is understood to be leaning towards a float, with Goldman Sachs and Patersons Securities involved in promoting the deal.
Barminco is one of Australia’s largest drilling contractors, employing more than 2,000 people at 23 mines in Australia and Africa.
It also has a 50 per cent interest in African Underground Mining Services, with Ausdrill.
The unpredictable nature of these sales was highlighted by Ausco and national construction contractor Valemus.
Ausco’s former owner Waco International was reported to be working on a float of the Brisbane-based national business, but has agreed instead to sell to UK-based private equity group TDR Capital.
TDR already owns Algeco, a business that has 223,000 modular accommodation units across its operations in the Northern Hemisphere.
Valemus, which trades as Abigroup, Baulderstone and Conneq, commenced a public share offer but ended up being acquired by property and construction group Lend Lease.
The recent WA deals include the $110 million purchase of Mitchell Corp by national logistics company Toll Group.
Under the ownership of CHAMP Ventures, Mitchell had produced patchy financial results over several years.
CHAMP was also the vendor of TSmarine, which was sold to international company Fugro and has become part of Fugro’s subsea services business.
Meanwhile, Archer Capital partner Peter Gold said his group was planning to support further growth by Quick Service Restaurants, which already operates 620 Australian stores under the Chicken Treat, Red Rooster and Oporto brands.
The group also has stores in New Zealand, China, the US and UK.
The Archer transaction marks the exit of former managing director Frank Romano, who had a 15 per cent shareholding in the business.
Archer was advised by Ernst & Young and the terms of the deal were not announced.
