SCF Containers’ rebooted auction revs up; I Squared tipped to look
London-listed private equity investor Intermediate Capital Group has cut the ribbon on a rebooted auction for its Aussie transport and storage solutions business, SCF Containers, after swapping sell-side advisers earlier this year.
SCF Containers CEO Justin Speedy.
Street Talk understands Rothschild’s bankers, who replaced Jefferies around May, have told potential investors to get their non-binding indicative bids in by the first week of October, suggesting ICG could book a circa $350 million payday before Christmas.
Sources said Florida-headquartered infrastructure investor I Squared Capital lobbed a bid in the Jefferies-run sale process for SCF Containers last year, which was eventually abandoned. I Squared is expected to come back for a second look, along with other core-plus infrastructure types.
The 30-year-old business was initially shopped around with $30 million in earnings before interest, tax, depreciation and amortisation last year. Its annual earnings had grown to $35 million by May – probably helped by a bolt-on acquisition of Kiwi trade player CSL Containers, which added new equipment types for lease and sale to SCF’s stables.
It is expected to fetch a low double-digit multiple, implying a price tag north of $350 million.
ICG’s attempts to sell the business in 2022 were tripped up by staff ructions in its Australian offices, as well as bidders’ unwillingness to price in what was described as choppy forecasts.
Its head of Australia and New Zealand for equity and mezzanine investments, Ryan Shelswell, who had led the SCF investment, left the business after more than a decade. However, Jefferies did lock in a refinancing for the asset, sources said.
Rothschild, which secured a $425 million sale of Rail First
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