NEW YORK, November 14, 2000 - Castle Harlan, Inc., manager of the Castle Harlan Australian Mezzanine Partners Worldwide funds, together with the funds managed by Castle Harlan Australian Mezzanine Partners Pty. Limited (CHAMP) and management of Sheridan Australia Pty. Limited, today announced the purchase of the worldwide business and assets of Sheridan Australia in transactions valued at approximately A$135 million. The seller was C. S. Brooks, Inc., of Greenwich, CT.
Sheridan Australia is Australia's largest manufacturer of bed and bath linen products and is one of the most recognized bed linen brands in the world, with distribution in more than 50 countries.
"We have steadfastly maintained our product quality and innovation as we expanded into new markets," said Myron Mann, CEO of Sheridan Australia and a member of the management group that participated in the purchase. "Under Castle Harlan and CHAMP's stewardship, we will have access to new management acumen and capital that will facilitate our sales growth and global expansion."
Created in 1985 by the merger of Sheridan and Actil, founded in 1964 and 1942, respectively, Sheridan Australia was acquired by C. S. Brooks, Inc. in 1996. Sheridan Australia is the only vertically integrated bed linen manufacturer in Australia, with its main manufacturing site and operational headquarters in Adelaide and its printing operations in Hobart The company's sales and marketing operations are headquartered in Sydney and the company also operates through wholly-owned subsidiaries in the U.S., U.K. and New Zealand, and through a joint venture in Japan.
Additional resources for acquisitions and incremental growth in Australia and internationally are expected to be made available. The CHAMP I Funds contributed A$64 million in equity-related capital and UBS Warburg, as head of a bank syndicate, provided facilities for up to A$103 million in revolving debt facilities, term loans and subordinated debt. Castle Harlan Australian Mezzanine Partners Pty Limited advised Castle Harlan, Inc. on this transaction.
Since its founding in 1987, Castle Harlan has completed acquisitions exceeding US$4.5 billion. The New York merchant bank's portfolio companies have included Delaware Management Company, a Philadelphia-based money-management firm with more than US$32 billion in assets under management; Truck Components, Inc., the largest manufacturer of wheel-end components for large trucks; Smarte Carte, the world's largest airport luggage cart rental company; and MAG Aerospace, the leader in worldwide manufacture of aircraft sanitation systems.
Currently among Castle Harlan's portfolio companies are Universal Compression, Inc., a lading independent provider of natural gas compression equipment and services; Commemorative Brands, Inc., one of the leading manufacturers of class rings and other specialty jewelry under the ArtCarved and Balfour brand names; and Worldwide Flight Services, a major provider of ground services for more than 200 airlines throughout the world.
Castle Harlan was founded by John K. Castle, a pioneer in institutionalizing private equity investing through limited partnerships and the former president and chief executive officer of Donaldson, Lufkin & Jenrette, and by Leonard M. Harlan, founder and former owner and chairman of the Harlan Company, a diversified real estate and corporate finance advisory firm.