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Cashed up trade players asserting dominance
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Cashed up trade players asserting dominance

Trade players accounted for 95% of mid-market business services deals in the half year to 30 June 2019. Horizontal integration of companies is a common theme as trade buyers seek to enter new geographical or ancillary markets through acquiring an established market share rather than through pursuing organic strategies.

Volution’s recent purchase of Ventair for $27m is a great example. The acquisition of Ventair allows Volution to penetrate new markets for its ventilation products, and creates a stronger product offering to the existing Australian and New Zealand markets.

The fragmentation of competing companies within business services segments has seen market consolidation become a pertinent factor behind the uptick in deals. By targeting and acquiring medium size, well-established competitors, businesses can improve growth opportunities and margins while also improving capability in their own operations.

We have also seen this strategy consistently deployed within the training and education industry. A recent example is Janison Education Group Limited acquiring Language & Testing Consultants Pty Ltd for $15m (including earnouts).

Other notable trade transactions in the sector in the first half of 2019 include:

  • Australia’s second largest funeral services home Propel Funeral Partners completing the acquisition of Morleys Funerals Pty Ltd for $14m.
  • Coventry Group Limited acquiring Nubco Pty Ltd for $36m.

Pitcher Partners has an experienced team of specialists that can assist you with any inbound or outbound transactions between your own territory and Australia, including advising on the international taxation and structural implications. Do not hesitate to contact us if you would like to discuss your own situation.


Wilson & Bradley

M&A Advisory

Divestment to Julius Blum GmbH

Established in 1976, Wilson & Bradley Pty Ltd distributes and supplies a range of kitchen and cabinet hardware to the kitchen and cabinetmaking industry within Australia. The family-owned and operated business, headquartered in Melbourne, employs over 90 staff via a national footprint of branches in Melbourne, Sydney, Brisbane, Perth and Adelaide. The second generation of the Wilson family approached Pitcher Partners, looking to realise the investment they had made in the business over the prior four decades.

Wilson & Bradley presented a unique opportunity as one of two distributors for Austrian kitchen and cabinet fittings manufacturer Julius Blum GmbH products in the Australian market. The corporate finance team were able to strategically present the acquisition to Julius Blum GmbH as an opportunity to solidify their route to market in the region, a rationale which was well received by the purchaser.

The acquisition of Wilson & Bradley was completed by Julius Blum GmbH in May 2019, with the Pitcher Partners corporate finance team providing support throughout the process. This included on-site support of negotiations in Austria and ensuring full value was preserved throughout the due diligence process.

“We engaged Pitcher Partners to lead us through the sale process for our family business to Australian headquartered Julius Blum GmbH. What impressed us about Pitcher Partners was their seamless teamwork and one firm approach. We engaged with several partners and staff of Pitcher Partners throughout the sales process and the quality of service and technical expertise was consistent and of the highest quality. This ultimately helped achieve an exceptional outcome for our family”- Trevor Wilson, Director, Wilson & Bradley

This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

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Responses to queries submitted via this form (“Response”) are produced by Pitcher Partners Advisors Proprietary Limited and are prepared for the exclusive use and benefit of those who are invited, and agree, to participate in the CRITICAL POINT NETWORK service. Responses provided, or any part thereof, must not be distributed, copied, used, or relied on by any other person, without our prior written consent. Any information provided is intended to be of a general nature and prepared without taking into account your objectives, circumstances, financial situation or particular needs. Any information provided does not constitute personal advice. If you act on anything contained in a Response without seeking personal advice you do so at your own risk. In providing this information, we are not purporting to act as solicitors or provide legal advice. Any information provided by us is prepared in the ordinary course of our profession and is based on the relevant law and its interpretations by relevant authorities as it stands at the time the information is provided. Any changes or modifications to the law and/or its interpretation after this time could affect the information we provide. It is not possible to guarantee that the tax authorities will not challenge a transaction or to guarantee the outcome of such a challenge if one is raised on the basis of the information we provide. To the maximum extent permitted by law, Pitcher Partners will not be liable for any loss, damage, liability or claim whatsoever suffered or incurred by any person arising directly or indirectly out of the use or reliance on the information contained within a Response. We recommend you seek a formal engagement of our professional services to consider the appropriateness of the information in a Response having regard to your objectives, circumstances, financial situation or needs before proceeding with any financial decisions. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.
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