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BBGP participates in the take-private of leading US laundry equipment provider
15.06.07
BBGP participates in the take-private of leading US laundry equipment provider
On 15 June 2007, Babcock & Brown Global Partners (‘BBGP’) participated alongside Babcock & Brown (ASX:BNB) in the take-private of the US-listed company Coinmach Service Corp (‘Coinmach’). Babcock & Brown issued the following press release to the Australian Stock Exchange on 15 June 2007 in relation to the deal:
BABCOCK & BROWN ACQUIRES US LISTED ESSENTIAL SERVICE PROVIDER
International investment and advisory firm Babcock & Brown (ASX: BNB) today announced that it has entered into a definitive merger agreement to acquire 100% of the issued capital of Coinmach Service Corp. (AMEX: “DRY”, “DRA”) (Coinmach), a leading supplier of outsourced laundry equipment services for multi-family housing properties in North America, for approximately US$713 million (EV approximately US$1,331 million plus transaction costs). This represents a price per share of US$13.55 and an approximate 22% premium to
the 30 day VWAP.
Completion of the acquisition is currently expected to occur during the 3rd quarter of 2007 and is subject to approval by Coinmach’s common stockholders and certain other customary closing conditions. The transaction has been approved by the Coinmach Board of Directors, which has also recommended that the common stockholders approve the acquisition. In addition, stockholders of Coinmach holding greater than 60% of the total voting power of the outstanding capital stock of Coinmach have agreed, subject to certain terms and conditions, to vote in favour of the transaction.
Coimach’s key management team has agreed to remain with the company following the completion of the transaction. The acquisition will be made by Babcock & Brown and a syndicate of financiers including RBS.
Rob Topfer Global Head of Corporate Finance at Babcock & Brown said, “Coinmach’s business has many of the attributes that characterise Babcock & Brown’s principal investment activities: long-term customer contracts; provision of an essential service; low net customer attrition; a quality management team; and consistent inflation-related price increases that generate stable and predictable cash flows that are largely insulated from economic cycles.
“There are also significant business benefits arising from substantial economies of scale and the rest of the industry remains highly fragmented offering opportunities for further rationalisation over time. We have also identified opportunities to leverage the existing route infrastructure, service, sales and collection capability to enter adjacent businesses with essential service characteristics.
“The business should be able to leverage off the activities of the Babcock & Brown Real Estate Division in the residential market in the US after its acquisition of BNP Residential which was completed in March this year.”
Phil Green CEO of Babcock & Brown said, “This acquisition delivers our recently established Corporate Finance Division in the US significant opportunities to create a broader platform for growth in that market.”
For further information please contact:
Marwan El-Asmar
Babcock & Brown Global Partners
Tel: +44 20 7203 7300
About Babcock & Brown Global Partners
Babcock & Brown Global Partners ("BBGP") is a €370 million co-investment fund with Babcock & Brown. BBGP has been established to invest exclusively in transactions originated and structured by Babcock & Brown on a global basis. BBGP has the right to participate in equity opportunities that Babcock & Brown are seeking to syndicate to third party investors.
About Babcock & Brown
Babcock & Brown is a global investment and advisory firm with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments. Babcock & Brown was founded in 1977 and is listed on the Australian Stock Exchange.
Babcock & Brown operates from 29 offices across Australia, North America, Europe, Asia, United Arab Emirates and Africa and has in excess of 1,000 employees worldwide. Babcock & Brown has five operating divisions including real estate, infrastructure and project finance, operating leasing, structured finance and corporate finance. The company has established a funds management platform across the operating divisions that has resulted in the creation of a number of focused investment vehicles in areas including real estate, renewable energy and infrastructure.
For further information about Babcock & Brown please see the website: www.babcockbrown.com
About Coinmach
Coinmach’s core business (referred to as the “Route” business) involves leasing laundry rooms from building owners, property management companies, universities and other multi-family housing properties, installing and servicing laundry equipment, and collecting revenues generated from the laundry machines.
In addition to the Route business, Coinmach rents laundry machines and other household appliances to owners and managers of multi-family properties, individuals and corporations (referred to as the “Rental” business). The company also operates a laundry equipment distribution business (referred to as “Super Laundry”).
Through its Route and Rental businesses, Coinmach serves approximately 20 million people across 40 states in the US. Since 1995, Coinmach has enhanced its national presence by completing many significant acquisitions as well as numerous smaller acquisitions referred to as ‘tuck ins’. Such acquisitions have driven significant growth in the Route business and expanded the geographic reach of Coinmach from the north eastern US to its current spread of operations across the country.
No single customer represents more than 2% of the company’s gross revenue and the ten largest customers collectively account for less than 10% of Coinmach’s gross revenue.
The Rental business (Appliance Warehouse of America, Inc) involves the leasing of laundry equipment and other household appliances and electronic items to corporate relocation entities, property owners, managers of multi-family housing properties and individuals. This business is the product of two platform acquisitions in 1997 and 1998 with operations organically grown to the current business base across 28 states in the US.
Super Laundry is a laundromat equipment distribution company and incorporates constructing complete turnkey retail laundromats, retrofitting existing laundromats, distributing exclusive and non-exclusive lines of commercial coin and non-coin operated machines and parts, and selling service contracts.
The company has approximately 1,950 employees.
BBGP participates in the take-private of leading US laundry equipment provider
On 15 June 2007, Babcock & Brown Global Partners (‘BBGP’) participated alongside Babcock & Brown (ASX:BNB) in the take-private of the US-listed company Coinmach Service Corp (‘Coinmach’). Babcock & Brown issued the following press release to the Australian Stock Exchange on 15 June 2007 in relation to the deal:
BABCOCK & BROWN ACQUIRES US LISTED ESSENTIAL SERVICE PROVIDER
International investment and advisory firm Babcock & Brown (ASX: BNB) today announced that it has entered into a definitive merger agreement to acquire 100% of the issued capital of Coinmach Service Corp. (AMEX: “DRY”, “DRA”) (Coinmach), a leading supplier of outsourced laundry equipment services for multi-family housing properties in North America, for approximately US$713 million (EV approximately US$1,331 million plus transaction costs). This represents a price per share of US$13.55 and an approximate 22% premium to
the 30 day VWAP.
Completion of the acquisition is currently expected to occur during the 3rd quarter of 2007 and is subject to approval by Coinmach’s common stockholders and certain other customary closing conditions. The transaction has been approved by the Coinmach Board of Directors, which has also recommended that the common stockholders approve the acquisition. In addition, stockholders of Coinmach holding greater than 60% of the total voting power of the outstanding capital stock of Coinmach have agreed, subject to certain terms and conditions, to vote in favour of the transaction.
Coimach’s key management team has agreed to remain with the company following the completion of the transaction. The acquisition will be made by Babcock & Brown and a syndicate of financiers including RBS.
Rob Topfer Global Head of Corporate Finance at Babcock & Brown said, “Coinmach’s business has many of the attributes that characterise Babcock & Brown’s principal investment activities: long-term customer contracts; provision of an essential service; low net customer attrition; a quality management team; and consistent inflation-related price increases that generate stable and predictable cash flows that are largely insulated from economic cycles.
“There are also significant business benefits arising from substantial economies of scale and the rest of the industry remains highly fragmented offering opportunities for further rationalisation over time. We have also identified opportunities to leverage the existing route infrastructure, service, sales and collection capability to enter adjacent businesses with essential service characteristics.
“The business should be able to leverage off the activities of the Babcock & Brown Real Estate Division in the residential market in the US after its acquisition of BNP Residential which was completed in March this year.”
Phil Green CEO of Babcock & Brown said, “This acquisition delivers our recently established Corporate Finance Division in the US significant opportunities to create a broader platform for growth in that market.”
For further information please contact:
Marwan El-Asmar
Babcock & Brown Global Partners
Tel: +44 20 7203 7300
About Babcock & Brown Global Partners
Babcock & Brown Global Partners ("BBGP") is a €370 million co-investment fund with Babcock & Brown. BBGP has been established to invest exclusively in transactions originated and structured by Babcock & Brown on a global basis. BBGP has the right to participate in equity opportunities that Babcock & Brown are seeking to syndicate to third party investors.
About Babcock & Brown
Babcock & Brown is a global investment and advisory firm with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments. Babcock & Brown was founded in 1977 and is listed on the Australian Stock Exchange.
Babcock & Brown operates from 29 offices across Australia, North America, Europe, Asia, United Arab Emirates and Africa and has in excess of 1,000 employees worldwide. Babcock & Brown has five operating divisions including real estate, infrastructure and project finance, operating leasing, structured finance and corporate finance. The company has established a funds management platform across the operating divisions that has resulted in the creation of a number of focused investment vehicles in areas including real estate, renewable energy and infrastructure.
For further information about Babcock & Brown please see the website: www.babcockbrown.com
About Coinmach
Coinmach’s core business (referred to as the “Route” business) involves leasing laundry rooms from building owners, property management companies, universities and other multi-family housing properties, installing and servicing laundry equipment, and collecting revenues generated from the laundry machines.
In addition to the Route business, Coinmach rents laundry machines and other household appliances to owners and managers of multi-family properties, individuals and corporations (referred to as the “Rental” business). The company also operates a laundry equipment distribution business (referred to as “Super Laundry”).
Through its Route and Rental businesses, Coinmach serves approximately 20 million people across 40 states in the US. Since 1995, Coinmach has enhanced its national presence by completing many significant acquisitions as well as numerous smaller acquisitions referred to as ‘tuck ins’. Such acquisitions have driven significant growth in the Route business and expanded the geographic reach of Coinmach from the north eastern US to its current spread of operations across the country.
No single customer represents more than 2% of the company’s gross revenue and the ten largest customers collectively account for less than 10% of Coinmach’s gross revenue.
The Rental business (Appliance Warehouse of America, Inc) involves the leasing of laundry equipment and other household appliances and electronic items to corporate relocation entities, property owners, managers of multi-family housing properties and individuals. This business is the product of two platform acquisitions in 1997 and 1998 with operations organically grown to the current business base across 28 states in the US.
Super Laundry is a laundromat equipment distribution company and incorporates constructing complete turnkey retail laundromats, retrofitting existing laundromats, distributing exclusive and non-exclusive lines of commercial coin and non-coin operated machines and parts, and selling service contracts.
The company has approximately 1,950 employees.