The shareholders of Hudson Building Supplies Pty Limited (‘Hudson”), over 96% of which include funds and mandates managed by mid-market private equity firm Propel Investments (“Propel”), today announced that they had signed a sale agreement with Crane Group Limited (“Crane Group”). Under the sale agreement, Crane Group (through its subsidiary Crane Distribution Limited) will acquire 100% of the shares in Hudson for total consideration of $31.5 million. The sale is conditional on the satisfaction or waiver of a condition precedent with completion expected to occur on 1 November 2010.
First established in 1846, Hudson is one of the most well known trade focused suppliers of timber and hardware on the East Coast of Australia with 15 branches in NSW and South East QLD, as well as two frame & truss manufacturing plants and a milling and moulding facility. Hudson is a major supplier of timber and hardware to trade customers as well as the serious home renovator. Hudson has its headquarters in Rouse Hill in NSW and employs over 245 staff nationally. In the year ended 30 June 2010, Hudson generated sales of over $107 million.
Mr Colin Ravenhall, the Chairman of Hudson said “We are delighted that Crane Group has agreed to acquire Hudson and believe that Hudson will be an excellent fit with Crane’s existing business. We see significant opportunities in the trade segment of the home improvement market and believe Hudson will provide Crane with an excellent platform from which to pursue them.”
Mr John Simon, the CEO of Hudson said “We are very excited about the prospect of being part of the Crane Group which will facilitate the next phase of Hudson’s evolution and believe the acquisition will be very positive for our employees and customers. Working with Propel and the board of Hudson over the last 3-4 years, we have achieved significant growth and consolidated Hudson’s strong position in the NSW and South East QLD markets. We believe that the close fit between Crane Group’s Trade Distribution business and Hudson will enhance our position further under Crane Group’s ownership.”
Mr Fraser Henderson, a Managing Director of Propel and a Director of Hudson said “Together with management, we have been able to turn around Hudson’s business in recent years, which has allowed us to deliver liquidity and a positive return to Propel’s investors. We wish Hudson well under its new ownership.”
Hudson was advised by Greenstone Partners, Corrs Chambers Westgarth and Greenwoods & Freehills on the sale.
Tel:+61 2 8272 5210
Chief Executive Officer
Hudson Building Supplies
Tel:+ 61 2 9629 0400