Electric golf buggy manufacturer MGI sells 80% stake to Anacacia Capital

Private equity firm Anacacia Capital has acquired a majority stake in MGI, an Australian electric golf buggy manufacturer, marking the company's first ownership change since 1993.

Transaction snapshot

• Deal value: ~$100m for an 80% stake

  Deal multiples: ~2.5x revenue, 8.9x EBITDA

• Deal type: Private equity investment

• Investors: Anacacia Capital, Athletic Ventures, notable Australian athletes

Anacacia Capital, investing from its fourth private equity fund, has become MGI's majority shareholder. The deal involves co-investment from Athletic Ventures and sports stars including Karrie Webb, Matthew Dellavedova and Mitchell Starc.

MGI's annual revenue is understood to be about $50 million, with over half generated in North America and Europe. Their EBITDA is understood to be about $14m.

This investment aligns with Anacacia's strategy of backing Australian businesses with growth potential. The firm is betting on a revival in golf's popularity since the COVID-19 pandemic, particularly among MGI's core customer base of older workers and retirees.

Jeremy Samuel, founder of Anacacia Capital, said, "MGI fits our investment criteria perfectly. It's a successful Australian business with strong export potential and a solid market position."

Anacacia typically invests between $15 million and $100 million. This deal brings its total direct or bolt-on acquisitions to 60 since its founding in 2007.

MGI's founding Edwards family will retain a stake in the business, with Carrie Edwards-Britt and Miranda Turner continuing as joint chief executives.

This investment underscores Anacacia's focus on mid-market Australian companies with global growth prospects. The firm's track record includes successful investments in various sectors, now expanding into the sports equipment market with MGI.