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‘BGC hires investment bank to work on sale’
Posted on Tuesday, 04 December 2018 12:06
Australian construction business BCG has appointed Macquarie Group to explore a potential disposal of the business that could be worth around AUD 2.00 billion (USD 1.47 billion), according to recent media reports.
The building materials provider was founded by the late Len Buckeridge in the 1960s.
After his death in 2014, BGC was divided up among his 15 heirs, including his six children, eight grandchildren and his partner.
Without citing sources, the Australian Financial Review (AFR) was among those that reported on the matter, noting Macquarie was hired after a pitching process that was run by the group’s board.
Bankers are due to start working on a sales process for BGC immediately with formal bidding expected to start next year, the article suggested.
Media reports regarding a disposal of the group started in May, with the AFR saying buyers such as Australian and international building and construction companies, as well as private equity firms, are among those that will be sounded out by Macquarie.
The range of businesses under BGC include residential, mining and civil construction and contracting, industrial maintenance, heavy road haulage and property ownership.
It claims to be among Australia’s top ten privately-held companies by revenue and number of operations.
According to the AFR, the group generated revenue of AUD 2.70 billion last year and the sale would include its civil and mining contracting business, which has about AUD 1.00 billion in annual turnover and serves clients in the retail, energy and infrastructure sectors.
Its real estate portfolio is likely to be sold separately.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 47 deals targeting the Australian construction industry announced in 2018 to date.
The largest of these will be the sale of BGC, should it go ahead; however, the sale of Wanda Australian Commercial Properties to AWH Investment Group for AUD 1.13 billion is currently the biggest.
© Zephus Ltd