PPI Corporation – the failed Brisbane pipe and irrigation products manufacturer that was previously majority-owned by the private equity arm of Lazard – has been sold by the administrators for roughly $18 million.
Under the deal, privately backed The Lansell Group snapped up the Neta Garden Products business and associated wholesale and irrigation businesses.
PVC pipemaker and supplier David Moss Group purchased the balance of the business which included the mining, infrastructure and construction operations. The pair worked together on their bids but there is no common ownership.
The sale saved about 170 jobs out of a total staff of 275 and the proceeds provided sufficient funds to pay in full all outstanding entitlements to employees that would not transfer with the business.
The return to unsecured creditors would be about 25¢ in the dollar. There was not expected to be any return to equity holders. Secured lender GE Commercial will get back in full its $10 million exposure.
According to its website, PPI has annual revenue of more that $100 million. Established in 1979, PPI was forced into voluntary administration in January after a suffering a cash flow squeeze, with 65 per cent of its revenue coming from the mining and infrastructure area which was affected by projects being delayed or not going ahead at all.
PPI has offices in Brisbane, Perth, Adelaide, Melbourne, Townsville, Sydney and Hobart, as well as a factory and sales office in Christchurch, New Zealand.
Lazard initially invested in PPI in 2007, taking a 30 per cent stake. It later invested in tranches, taking its holding to 68 per cent.
PPB Advisory was appointed voluntary administrator in January.
Lansell was advised by M&A Partners while David Moss Group took legal advice from DibbsBarker.
M&A Partners have advised the Lansell Group on the successful acquisition of the Neta Garden Products business and associated Wholesale and Irrigation businesses from PPI Corporation.
PPI Corporation appointed PPB Advisory as voluntary administrators on Jan 15 2013. Lazard Carnegie Wylie was a major shareholder (68%) having initially invested in PPI in 2007 at a 30% stake.
4 March 2013
Issue of Shortfall Shares under Rights Issue
Pental Limited (formerly Symex Holdings Limited) (Pental or Company, ASX code: PTL) advises that, following its successful Rights Issue it has placed 26,300,003 Shortfall Shares through Patersons Securities Limited and M&A Partners. In addition is has placed 2,000,000 shares to an investor who applied for shares outside the deadline for placing the shortfall. Pental has raised $424,500 from this process exclusive of costs.
About Pental Limited
Pental is Australia’s largest manufacturer of soap, supplying its own brands of Country Life, Natural Selections, Sunlight, Velvet, Knights Castile and Lux Flakes, together with the sale of icon brands such as White King, Janola Jiffy Firelighters, Softly premium wool wash, Huggie fabric softener, Country Homestead wool mix, Sureguard moth and silverfish repellent, Hi Speed iron cleaner and Close Up and Aim toothpastes. More information on Pental is available at: www.pental.com.au