Swiss private equity owners, Gilde Buy Out Partners, rake in three times their original investment in the sign-making and display industry supplier by selling to Chequers Capital, another Euro-based private equity firm.
Swiss private equity owners, Gilde Buy Out Partners, rake in three times their original investment in the sign-making and display industry supplier by selling to Chequers Capital, another Euro-based private equity firm.
The profitable exit comes after a period of considerable growth that included the frenetic bolting on of seven acquisitions in the past three years. It allows McClelland, (pictured right) managing director and a major shareholder in the Australian Spandex business, to take the money and if not run, at least ride off with loaded saddlebags.
“It’s been a hard decision to leave such a fantastic team after fourteen years, but the acquisition by Chequers provided me with time to reflect and decide on the next stage of my career,” says McClelland. “As a major shareholder in the local Spandex business, I am also able to realise my shareholding, confident in the knowledge that we have built the strongest and most innovative distributor to the sign and display sector on this side of the world.”
Under his 14-year leadership Spandex has emerged as one of the leading suppliers to the sign-making and display industry in Australia. The sector has now seen its two leading suppliers change hands in the space of a couple of months, following multinational engineering plastics company, Dotmar Holdings’ takeover of Graphic Art Mart in December. The sector is extremely dynamic with many players of various sizes, including Spicers, DES and Starleaton all vying for the growing business.
The cashed-up new owners of Spandex with over AUD$2.6 billion under management, are set to further drive consolidation in the industry, similar to the acquisition of Q1 Media in Adelaide. According to Karsten Hartmann, director at Chequers Capital, they see multiple avenues to grow, especially expanding into new markets and into new product categories.
“We are excited about this partnership. Spandex is an outstanding company with leadership positions across Europe and Australia. We are extremely impressed by the strong management team and are looking forward to supporting them in their strategy to grow the company. In addition, we are keen to support Spandex in growing via further acquisitions."
The company is currently looking for McClelland’s replacement during which time he is flexible on departure date.