arcpac ipo

building sector stock

Crane’s Sedgwick to chair building float ArcPac

PUBLISHED: 1 HOUR 48 MINUTES AGO | UPDATE: 1 HOUR 48 MINUTES AGO
EDITED BY SARAH THOMPSON, ANTHONY MACDONALD AND GRETCHEN FRIEMANN
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Former Crane Group boss Greg Sedgwick will be back in front of fund managers as early as next week, this time leading Crescent Capital’s garage doors and windows business.
Sedgwick’s return to public equities was confirmed when Crescent‘s adviser, Macquarie Capital, released detailed pre-marketing research for Crescent’s latest ASX-hopeful, ArcPac Building Products, on Monday.
The man who oversaw Crane’s $800 million takeover in 2011, will chair the new entity on a board including former SAI Global boss Tony Scotton, ex-Cardno CFO Jeff Forbes, ArcPac CEO Neil Evans and Crescent’s Neville Buch and Patrick Verlaine.
Macquarie analysts Peter Steyn and Andrew Wackett are out in front of fund managers in Sydney, Melbourne and New Zealand this week, gauging interest and feedback on pricing ahead of next week’s expected management roadshow.
The analysts valued ArcPac at $147 million to $171 million, or 10.4 to 12.1-times forecast 2015 financial year profit. It represented about a 30 per cent discount to a basket of ArcPac’s bigger building sector peers, which included Adelaide Brighton, Brickworks and CSR.
ArcPac’s IPO will be pitched around its dominant market positions. It is the country’s second- largest garage door supplier with a 31 per cent market share and has 82 per cent share in the louvre window market.
The company is expected to make 37 per cent of earnings from windows in 2015, with the rest from garage doors.
Crescent Capital is expected to retain a stake on listing. Proceeds from the float will go to the vendor shareholder and paydown debt. The listed ArcPac is forecast to have net debt worth about 1.5-times earnings by the end of the 2015 financial year.
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