AFR Street Talk

From today's AFR:

Greencross sell-off draws private equity interest

• Dec 9 2015 at 12:15 AM
• Updated Dec 9 2015 at 12:15 AM
• Sarah Thompson , Anthony Macdonald , Joyce Moullakis

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Private equity is believed to be circling down on luck veterinary practice and pet shop Greencross, after watching its market value halve in the past six-months.
Private equity is believed to be circling down on luck veterinary practice and pet shop Greencross, after watching its market value halve in the past six-months.
At a time when Greencross is trading at 8-times earnings and private equity has shown a willingness to pay 11 to 12-times for such companies, it is interesting to note there is no shortage of big private equity firms in the pet business globally.
There is KKR & Co which owns a stake in UK-listed Pets At Home, BC Partners-controlled PetSmart in the United States and Petco Animal Supplies which TPG recently offloaded to CVC Capital Partners and the Canada Pension Plan Investment Board.
Swedish private equity firm EQT also invested in Evidensia, the Nordic market leader for veterinarian services, offering diagnostics, medical treatments and surgery for pets and horses, just over a year ago. EQT owns Australia's biggest radiology group I-MED Network Radiology.
Private equity is also no stranger to Greencross. Australia's Quadrant Private Equity sold its City Farmers business to Greencross in June 2014, while TPG Growth was a major shareholder in Mammoth Pet Holdings which merged with Greencross in November 2013.
Meanwhile, and as revealed by Street Talk Online on Tuesday, Bravura owner Ironbridge is taking advice from Fort Street on a potential listing, which is said to be in its preliminary stages. Other exit options will be considered.
Bravura, a financial services technology company that was previously listed on the Australian Securities Exchange, hinted at a possible return to being a public company in an interview with The Australian Financial Review in September after group chief executive Tony Klim flagged improving fortunes in the local tech scene.


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