PE firm Redwood North inks sensors deal
Daniel Belcher’s Redwood North is getting into the automation game.
PE firm Redwood North has acquired a majority stake in Melbourne sensors business Bestech. iStock
The mid-market private equity firm has picked up an 80 per cent stake in Bestech Australia – a manufacturer and distributor of industrial sensors and training equipment for the education, aerospace, waste management, food manufacturing and engineering sectors.
The 25-person Melbourne-based company was founded in 2002 by Sanjiv Bhasin. Its drawcard for Redwood is the sensors side of the business which automates functions in everything from toasters to construction sites, measuring parameters like temperature, pressure and force.
“Together we will pursue a growth strategy that builds on Bestech’s strong core offering and geographical reach, while exploring ways to meaningfully enhance the range of products and services,” Redwood North managing director Daniel Belcher told Street Talk on Tuesday.
This represents Redwood’s first investment in the sector and the 12th investment to date. ASIC documents list Belcher and Redwood head of portfolio operations John Freeman as Bestech directors alongside Bhasin.
The PE firm didn’t disclose the price but typically takes majority stakes in businesses between $3 million to $8 million EBITDA. Exists occur once earnings grow to $10 to $20 million.
Redwood was advised by corporate finance firm RSM and law firm Maddocks.
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