By PAUL PANCKHURST
In its second big deal in seven days, investment bank JBWere's private equity fund yesterday unveiled the sale, for $11 million, of Paykel, a Wiri-based engineering supplies distributor with 238 staff.
A listed Australian hardware, energy and farming group, Wesfarmers, is the buyer.
Commerce Commission and Overseas Investment Commission
approvals are needed and settlement is due on June 30.
Last week, a consortium led by the fund announced it was buying equipment hire company Hirepool for $46.4 million.
The Paykel sale tidies up the fund's purchase last December for nearly $52 million of the seven companies that were the remains of the old Skellerup business empire. At the time, the fund flagged plans to on-sell one of the companies.
Yesterday, JBWere's Brent Lawgun said that the sale would let the fund concentrate on the growth of the remainder, six exporting manufacturers now known as the Tiri Group.
The six are: lawnmower and home heating firm Masport (Auckland), Masport Foundries (Auckland), New Zealand Insulators (Temuka), Pacific Wallcoverings (Wellington), A&G Price (Thames), and RH Freeman & Co (Wellington).
Lawgun said the Paykel proceeds would help cut the bank debt that largely funded the purchase.
JBWere said the sale had the effect of cutting the purchase multiple - the ratio of price to annual earnings before interest, tax, depreciation and amortisation - from three to 2.6.
Launched last year, the $22 million fund has about $10.5 million left to invest.
Besides Hirepool and Tiri Group, the fund has money in listed payment terminals company Cadmus Technologies.
Lawgun said no more deals were imminent "but we're always looking".
