After four years and a polish, Adamantem puts Legend Corp up for sale

afr.com:

Four years after taking Legend Corp off the ASX, private equity outfit Adamantem Capital is placing the electrical and industrial distribution platform play up for sale, bringing on Miles Advisory to pitch the restructured business to trade buyers.

Adamantem acquired Legend in 2019 for 36.5¢ a share, valuing the company’s equity at $79.6 million and giving it an enterprise valuation of $100.6 million. Since then, however, the private equity firm has bulked up the company, including with the acquisition of Acculec from Anacacia Capital in 2021. That purchase was meant to position Legend to capitalise on the growth in work in high-voltage transmission as governments across the country spend up to secure the energy grid during the transition of renewable energy.

The transformation of the energy grid will provide plenty of tailwinds for Legend Corporation. Joe Armao

Adamantem went on to restructure the business, separating out the electrical and industrial distributions business from that working on the high voltage segment. Miles has been engaged to explore the sale of the former, which is now a leading supplier of electrical products – things like connectors, cable jointing systems, test and measurement instruments and cable management.

That business is expected to have annual earnings of some $25 million off revenues of around $100 million. Sources close to discussions about a transaction said it was trade buyers who were most expected to be interested in acquiring the company.

Even without the high-voltage business, Miles is likely to focus on the tailwinds of increasing electrification and the expanding size of the power network over the next two decades. Legend, which operates multiple brands including System Control