NEW YORK, January 27, 2005 - Castle Harlan, Inc., the New York private equity investment firm, announced today that CHAMP, its Australian affiliate, had acquired the businesses and assets of the Energy Services subsidiary of Ion, Ltd., an auto-parts manufacturer now in receivership. The transaction was valued at approximately A$144 million, plus the assumption of certain operating leases.
Ion's Energy Services operation, based in Melbourne, consists of two principal businesses. The Cootes Transport Group plays a leading role in Australia's energy supply chain, distributing oil, gasoline, asphalt, liquefied petroleum gas (LPG) and hazardous chemicals from terminals to regional depots, service stations and industry.
The other business, Liquip, is one of the world's largest manufacturers of specialty liquid-handling equipment and the only one that provides a total range of equipment primarily for the oil and gas storage, transport and processing industry. Both businesses are known for their high standards of customer service and their strong safety record for handling and transporting hazardous materials.
The two entities will operate as International Energy Services Pty Limited (International Energy). Together, they had revenues in their most recent fiscal year, which ended last June 30, of A$176.5 million, an increase of almost 15 percent over the prior year.
Ben Sebel, a Castle Harlan managing director, said International Energy's strong and effective management team would remain in place.
"CHAMP is enthusiastic about the opportunity to partner with the current management team to consolidate the group's leading position in the fuel and gas logistics business in Australia," Sebel said. "We are also confident that Liquip business will continue to lead this sector in Australia and will continue to grow its export markets in Asia and beyond."
Ion, International Energy's former parent, was placed in the hands of a voluntary administrator in early December after its banks withdrew its main lending facility.
Castle Harlan, founded in 1987, is a leading New York private-equity investment firm, investing in controlling interests in the buyout and development of middle-market companies in North America and Europe. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s.
Castle Harlan's portfolio companies, which employ more than 26,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; Horizon Lines, one of the largest U.S. container shipping companies, and Caribbean Restaurants, the most successful quick-service restaurant franchise in Puerto Rico with 165 Burger King units.
In 2000, Castle Harlan was a co-founder of CHAMP (Castle Harlan Australian Mezzanine Partners), which is the successor to one of Australia's oldest and largest private-equity investment firms dating back to 1987. The purchase of the Energy Services business of Ion is the seventh investment for the CHAMP I funds, more than 70 percent of which have now been committed.
CHAMP currently manages or advises approximately A$850 million in funds for private-equity investment in the Australasian region. Its portfolio companies include Austar United Communications Limited, Australia's second largest pay-TV company, with almost 500,000 subscribers.