PEP checks out JBS-backed engineering shop Scott Technology
Pacific Equity Partners is considering a tilt at New Zealand-listed engineering business Scott Technology, which is 53 per cent owned by Brazilian meat processor JBS and has Macquarie Capital running a strategic review.
Brazilian meat giant JBS has been a shareholder at NZX-listed Scott Technology since 2016. AP
It is understood the private equity firm, Australia’s largest, is assembling a team of dealmakers to run the numbers on Scott, which has a market capitalisation of $NZ256 million ($237 million). Whether PEP’s interest extends to the whole business or one of Scott’s primary units – logistics handling, meat processing and mining technology – remains to be seen.
Sources said PEP’s interest was preliminary, and that there was no certainty an indicative offer would be submitted. Sale flyers and non-disclosure agreements have been circulated to interested parties and an information memorandum is expected to be sent in coming weeks. From there, it should be a few more weeks until first-round bids are called.
The 110-year-old business started off in motor repairs and appliance manufacturing, and has since expanded to operations in 12 countries. It has a client list including Rio Tinto, Pfizer, Electrolux and Clarins. It has been listed since 1997 and JBS has been a majority shareholder since 2016.
Scott posted $NZ126.6 million revenue for the six months ending February, which boiled down to a tiny $NZ7.8 million after-tax profit.
The business has sharpened its margins, but raw materials hacked off $NZ75 million and employee benefits chipped away another $NZ37.3 million, leaving only a small profit.
The official announcement on the strategic review from June 15 kept it short and sweet, saying Macquarie Capital would look
Read more on afr.com
