AUSTRALIA
2019
SELL-SIDE
Edington Agencies is a specialist provider of high quality, globally sourced electric motors and power transmission products that it supplies as part of best practice solutions to the HVAC and industrial service & replacement markets. Customers who rely on the Business for HVAC applications include HVAC contractors and wholesalers, electrical wholesalers, and general electrical contractors; while customers who rely on the Business for industrial applications include small OEMs, manufacturers, and engineering contractors. Run under management with a small team of highly-skilled staff, Edington’s long-term strategy of combining technical expertise with an extensive product range and high customer-service standards has earned the Business its undisputed position as the leader in the Queensland market.
In 2018 Edington’s director engaged Johnsons Corporate as specialists in the sale of mid-sized businesses to undertake a strategic divestment campaign on his behalf. Having established and grown the Business since 1991, he thought the timing was right to pass ownership to a strategic suitor, who could best lead the Business through its next stage of growth.
The Business Sales Strategy
As a long-established business with a track record of consistent revenue growth, this represented an attractive opportunity for a strategic acquirer. In addition to being run under management, Edington also featured strong supplier relationships, a long-standing customer-base, experienced management, and a highly-skilled workforce. Looking forward a new owner could leverage these into multiple growth opportunities, including interstate expansion; extension into related HVAC product categories; and/or enhanced distribution through the development of an e-commerce channel(s) to the trades market.
Johnsons Corporate custom research & marketing focused on commercial enterprises in the directly-related HVAC, Electrical Component, and Power Transmission supply segments, as well as the broader industrial product sector. It also took into account related markets – including Electrical contractors and Hydraulic Component distributors – as well as a shortlist of potential financial buyers. Johnsons Corporate ran a proactive direct marketing campaign that uncovered +15 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer as well as a backup buyer, with Offer and Acceptance secured within 10 weeks of going to market.
The Australian Financial Buyer
Aldridge Capital is an Australian investment company, based in Sydney, that holds multiple industrial businesses in its portfolio. The acquisition of Edington Agencies served to further diversify its holdings.