Brookfield fires starter’s gun on Linx, sends Project Europe docs
AustralianSuper might be trying to spoil Brookfield’s $18.7 billion takeover offer for Origin Energy, but it’s business as usual at the Canadian infrastructure giant.
Street Talk can reveal Brookfield’s sellside advisers have formally launched the auction for the Australia and New Zealand logistics business Linx Cargo Care Group, sending detailed marketing materials to a select group of private equity and trade buyers.
Of note, Azure Capital and Cameron Partners are asking potential suitors to mix and match the divisions they like to build their own deal, stressing they are open to suitors bidding for individual units instead of buying the whole business in one hit.
Linx Cargo Care Group makes $600 million a year.
Non-binding indicative bids are due in the first week of October.
A 22-page flyer, obtained by Street Talk, shows the up-for-grabs portfolio, dubbed “Integrated Co”, brings in $600 million revenue and $70 million earnings annually from a wide-ranging portfolio that spans logistics, bulk-handling, project cargo, oil and gas, port management, and forestry.
The biggest division is C3 New Zealand, which handles more than 50 per cent of the country’s log exports and has significant market share in moving containers, vehicles and break bulk cargo.
It was founded in the 1950s and makes more than $NZ200 million ($185 million) annual revenue and $NZ30 million EBITDA.
Prospective bidders are told to expect steady growth at C3. It has held on to many of its clients for decades, while growing revenue and EBITDA at more than 7 per cent and 15 per cent respectively over the past four years, on a compounded annual growth rate basis. The unit sees upside in automation and other margin-improving solutions, which it reckons
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