Private equity firm, Allegro Funds, is reportedly looking to sell a major hydraulics group of companies which holds about 10 per cent of Australia’s market share.
Australian Financial Review said yesterday that Allegro Funds Managing Director, Johan Krynauw, has granted rival sponsor Five V Capital exclusivity to acquire industrials company, Questas Group.
This follows a six-year turnaround after investing in the hydraulics and water specialist with founder Kede Carboni retaining an interest.
Prior to Allegro’s initial purchase in 2019, Questas prioritised hydraulic, irrigation, pump and engine solutions to the mining, construction, agricultural and general industrial sectors.
Since Allegro took over, hydraulics became the key focus for the business.
The Questas Group of companies includes Aussie Fluid Power, Australian Surface Technologies, Beasley’s Hydraulics, Berendsen Fluid Power, CCA Hardchrome, EPG Engines, Ezy-Fit Hydraulics & Engineering Group, HardChrome Sales, Isadraulics, Malcolm Thompson Pumps, Meadow Industrie, Nordon Cylinders, Stalker Pumps, Swanson Industries, The Hydraulic Warehouse and The Winnellie Group.
According to a PricewaterhousCoopers report, Questas Group generated $270 million in annual revenue and $40 million in EBITDA last year. It also has about 800 workers across 35 sites.
In 2019, Carboni told Miles Advisory Partners that partnering with Allegro enabled the next chapter of growth for his company.
“Following the retirement of my long-term business partner two years ago I had been considering the next steps for the company.
“Allegro’s investment style aligned with what I was looking for from an equity partner to help grow the business.
“We’ve established a strong position in our sectors and now with additional capital and Allegro’s well developed integration processes we can take the business to the next level.
“Allegro’s proven and repeatable approach appealed to me and will no doubt appeal to other industry participants either looking to sell to or partner with the Questas Group.”
Meanwhile, rumours abound about another potential sale of Team Global Express.
In other news, the Australian Livestock & Rural Transporters Association has announced a leadership change.
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