Personal safety equipment provider Amare Safety seeks buyer
Amare Safety, a Melbourne-based personal safety gear distributor, is up for sale after nearly four decades under its founder's leadership.
Potential transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Potential acquisition
Investors: Private equity firms in early discussions
Amare Safety, founded in 1985 by Geoff Pizzey, supplies workwear, eye protection, and gas detection equipment to businesses, emergency services, government agencies, and consumers. The company also sells online and has expanded to include showrooms across Australia and entered the New Zealand market in 2004.
Pacific Equity Partners (PEP) could be a potential buyer, given its recent acquisition of industrial supplies group ATOM. PEP has expressed interest in growing ATOM's footprint through bolt-on acquisitions of smaller rivals.
Amare Safety is fully owned by Pizzey through Amare Industrial Protective Equipment. In the last financial year, the company's revenue grew 10.3% to $55 million, with profit before tax increasing 30.4% to $6.4 million. This marks steady growth from $26.7 million revenue and $2.3 million profit before tax in FY2018.
The company boasts $41.7 million in total assets, $3.6 million in cash, and over 80 staff.
Private equity funds have shown interest in mid-market, family-owned industrial businesses with established client bases and growth potential. These firms are particularly drawn to small industrial businesses that have demonstrated growth in challenging economic conditions.
PEP's recent acquisition of an 80% stake in ATOM, facilitated by QIC's private debt team, serves as an example of this trend. ATOM, the second-largest player in its segment after Wesfarmers' Blackwood, reports annual turnover of about $350 million and EBITDA of $40 million.
