by dobbyn+carafa

A huge congratulations to our clients, the Ellul Family, on this landmark deal.

Our Corporate Advisory team lead by our Directors, Anthony Dobbyn and Mathew Skelley, are proud to have been a part of this exciting transaction in collaboration with Gadens and KPMG Australia, to facilitate the sale of Marand Precision Engineering to CHAMP Private Equity.

A press release issued by Marand Precision Engineering regarding the transaction can be read here.

Read the full Australian Financial Review article here and below:

CHAMP Private Equity strikes at Marand Precision Engineering

Sarah Thompson and Anthony Macdonald

Mar 21, 2019 – 9.20pm

“Australia’s CHAMP Private Equity is set to make a rare investment into the defence services sector.

Street Talk understands the Sydney-based buyout fund manager has struck a deal to buy Marand Precision Engineering, which makes fighter jet parts and other specialised engineering products.

CHAMP is expected to take a majority stake in the Victorian-based company, investing alongside Marand’s founding family.

Marand Precision Engineering is an innovative manufacturer that cut its teeth in Australia’s car industry before broadening its horizons to provide engineering solutions to defence, aerospace, rail and mining clients.

It was founded 50-years ago by Andy Ellul and is now run by his son, David Ellul.

The company now designs, makes and exports complex products for the likes of Lockheed Martin, Boeing, BAE Systems, BHP and Rio Tinto, and one of its specialties is making components for the F-35A Lightning II aircraft – a fighter jet used by the Royal Australian Air Force and about a dozen other air forces around the world.

It is understood to be the first time in Australian that a private equity fund has taken a position in a business that counts the defence sector as a big part of its earnings.

CHAMP’s likely to have been drawn by the Australian government’s commitment to set aside 2 per cent of GDP spend for the defence sector by 2021, in a policy that has support from both major political parties.

Marand is also an exporter, selling its products to major customers offshore.

It is not known what CHAMP paid for the majority stake. Marand Precision is believed to record more than $100 million a year in revenue and employ more than 250 staff.

Street Talk earlier erroneously reported that CHAMP was in talks to acquire US-based Moran Engineering.

KPMG Corporate Finance advised Marand and the Ellul family, along with law firm Gadens and accountants Dobbyn and Carafa. Gilbert + Tobin advised CHAMP.

It’s expected to be CHAMP’s penultimate investment from its current fund, after 12 or so months of non-stop dealmaking when it bought or sold almost 10 companies.

Investor sources reckon CHAMP will make one or two more investments from Fund 4 before kicking off preparations for its fifth fund. That raising – pegged at about $700 million or just above – is slated to begin in the second half of this year.”