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Land of buy-out promises15/11/2006. Source: Asia Private Equity Review (APER).
 Australia has further consolidated its position as the land for mega buyouts When Kohlberg Kravis Roberts & Co. announced that it has clinched the deal to acquire the waste management and industrial services businesses from Brambles Industries, it was another confirmation that Australia is fast becoming the land for mega buy-outs, says the APER.
KKR has agreed to deploy A$1.83 billion (US$1.35 billion) in taking over Cleanaway and Brambles’ industrial services. It is the largest buyout transaction on record Down Under.
During the past 12 months, Australia’s buyout market witnessed a sharp and constant increase in its buyout deal size. Coincidentally, it was also the time when CHAMP Private Equity announced the final closing of its CHAMP II Funds, which received a record A$950 million.
In August last year, Affinity Equity Partners committed A$258.40 million in acquiring Loscom from DB Capital Partners. The size of this transaction was soon overshadowed by CCMP Capital Asia’s A$1.2 billion pledge to the South Africa-based scaffolding company, Waco International, which has substantial operations in Australia.
But by the end of the first quarter this year, Newbridge Capital, together with its parent affiliate, Texas Pacific Group, set a new benchmark for the Australian buyout market when the private equity investors agreed to an A$1.4 billion transaction to take over Myer’s department stores as well as its two properties in Melbourne.
Before the market adjusted to the increasingly large deal size that has began to dominate the Australian market, KKR took the crown in sealing the largest buyout deal Down Under (fig.18).
Despite being the world’s 18th largest economy, with a gross domestic product of US$637.3 billion that trails behind both Japan and South Korea, which have been dominating Asia’s buyout scene, Australia has emerged as the land for buyout investors.
In the first six months of the year, buyout transactions consummated Down Under amounted to over US$3.44 billion, far exceeding other markets such as Japan and South Korea, which recorded US$1.81 billion and US$76 million respectively (fig.19).
Asia Private Equity Review (APER) is the foremost voice on matters related to private equity/venture capital in the region. Well-recognised as being the singular source for accurate and timely news, in-depth analysis and global perspectives, APER is published by the Hong Kong-based Centre for Asia Private Equity Research. For further information please visit their website at www.asiape.com or email them at info@asiape.com
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