Nicholson Ryan Lawyers (NRL) advises Excelsior Capital Limited (ECL) on the sale to IPD Group Limited (IPD)

Nicholson Ryan Lawyers (NRL) is pleased to have advised Excelsior Capital Limited (ECL) on the successful sale to IPD Group Limited (IPD) of 100% of the issued share capital in its electrical and components manufacturing and distribution division, CMI Operations Pty Ltd (CMI), for an aggregate deal value of up to $101 million (comprising $91.7 million in cash upfront following completion adjustments and up to $8.9 million deferred and contingent on performance). The transaction involved obtaining ECL shareholder approval at a general meeting.

CMI is a leading distributor of electrical cables and manufacturer and distributor of plug brands in Australia. IPD is a provider of electrical solutions in energy management and automation and is dedicated to enhancing electrical infrastructure.

The transaction represents a compelling divestment in highly complimentary sectors that aligns with ECL’s portfolio optimisation strategy, with proceeds delivered by the sale enabling ECL to strategically re-allocate its capital resources to take advantage of emerging investment opportunities, further strengthening ECL’s position as a leading Australian listed investment company.

The Nicholson Ryan team was led by principal, Leath Nicholson and supported by senior associate Veroshan Sripragasan and lawyer Alannah Beath.

Commenting on the deal, Leath Nicholson said:

“It is a privilege to have supported ECL throughout this complex transaction. The divestment of CMI is an important part of ECL’s portfolio optimisation strategy. The transaction will enable ECL to focus on its investment priorities, while at the same time allowing CMI the opportunity to grow under IPD’s ownership.”

The team worked alongside Houlihan Lokey in advising ECL. IPD was advised by Hamilton Locke and Grant Samuel.

The deal is another example of Nicholson Ryan’s credentials in the mid-market M&A sector. It continues a productive past few years for the team, during which it also advised:

• Geoffrey Thompson Holdings Limited, on the landmark sale of its fruit growing, processing, packing and distribution business and the legacy “Jeftomson” brand to Redland Premium Fruit Pty Ltd and its related entities;
• Proptech Group Limited, on the successful take private of the company by the US-based MRI Software LLC for an equity value of $93.4 million by scheme of arrangement;
• Bay Building Group Pty Ltd, on the partial sell-down of equity by its majority owners to PSC Insurance Group Limited (PSC), in addition to a private placement of shares by the company to PSC, for an aggregate value of $12 million; and
• The principals of the Pole Foundations Australia business, in relation to the sale of the business to GenusPlus Group Limited for upfront consideration of $22 million, in addition to contingent earn-out payments equivalent to $20 million or more, subject to the satisfaction of performance based hurdles.