Jaybro sale stuck in the slow lane

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LadyKiwi
Posts: 433
Joined: Tue Feb 26, 2013 7:16 am

Jaybro sale stuck in the slow lane

Post by LadyKiwi » Sun Oct 22, 2017 9:18 pm

Jaybro sale stuck in the slow lane

The sale of Jaybro, the industrial workwear and textile provider, should be getting towards the finishing line, but it looks likely to be a slow, grinding transaction.

The business is headed by Steve Joyce, who has links to the Plymouth Brethren Christian Church, has been on the market for the past few months and initially attracted local and overseas trade buyers.

DataRoom understands Wesfarmers and the London-listed Bunzl looked at the business and were identified as the most likely trade buyers because of the synergies that could be tapped.

However, the pair walked away and it’s believed two private equity players remain in contention: Crescent Capital and CHAMP. The latter has reportedly turned lukewarm on the transaction and there is a risk it could walk away.

It is believed the indicative bids were between $150 million and $175m based on Jaybro’s $20m earnings before interest, tax, depreciation and amortisation. Now that it’s nearing the final stages of the sale, it’s looking likely that the final bids — if lodged — could come in between $130m and $150m.

The Jaybro camp deny that the sale is struggling or that there’s a deadline in place for the transaction to be finalised.

The business is being sold by Greenhill.

Speaking of the investment bank, UBS has questioned, in a research report, as to whether Greenhill will be able to meet the repayments on its $US350m ($450m) loan from Goldman Sachs. The global advisory firm reported a third-quarter loss of US18c per share and slashed its dividend — something its bosses had vowed never to do.

UBS said Greenhill was working on just three deals, worth $US5bn, with one of them accounting for 94 per cent of that total, and questioned whether the loan repayments would be met, given the pipeline.

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