NEW YORK, September 12, 2006 - Castle Harlan, Inc., the New York-based private-equity investment firm, and CHAMP Private Equity, its affiliate based in Sydney, Australia, announced today that private-equity investment funds they manage have acquired Great Western Malting, Canada Malting Company, Barrett Burston Malting and a 60 percent interest in Bairds Malt to create United Malt Holdings ("UMH"), one of the world's largest producers of malt for use in the brewing and distilling industries.
UMH has revenues in excess of US$400 million. It operates in the United States, trading as Great Western Malting; Canada, trading as Canada Malting Company; Australia, trading as Barrett Burston Malting; and the United Kingdom, where it owns a 60 percent interest in Bairds Malt. The businesses were acquired from Conagra Foods, Inc., of the United States and Tiger Brands of South Africa.
David Pittaway, a Castle Harlan senior managing director, said, "We have been very impressed by UMH's management team, led by chief executive officer Jim Anderson, and look forward to working together in partnership to grow this business. The company is a leader in its industry, serving many of the world's largest brewers and distillers. Its global presence means that it is very well positioned to serve these customers in any of the countries in which they operate."
Jim Anderson, chief executive officer of UMH, said, "Market conditions in the malt industry continue to be challenging; however, UMH focuses on distinguishing itself by matching our customers' critical measurements for quality, service and innovation. It is very important to us to create successful long-term relationships with our customers. The whole management team looks forward to working with Castle Harlan and CHAMP to leverage their expertise as we seek to further grow and improve the UMH business."
John Haddock, an associate director with CHAMP Private Equity, commented, "Like the highly successful Austar investment by CHAMP and Castle Harlan, the acquisition of UMH highlights the capacity that the two firms have to complete difficult multi-jurisdictional transactions."
UMH has approximately one million tons of malt production capacity in 14 plants in four countries.
Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 19 investment professionals has completed 45 acquisitions since its inception with a total value in excess of $8 billion. It is currently investing its fourth fund, Castle Harlan Partners IV, which closed in August 2003 with capital commitments of $1.2 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s.
Castle Harlan's current portfolio companies, which employ more than 42,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; Perkins & Marie Callender's, Inc., which operates and franchises 618 family restaurants in the United States and Canada, and Baker & Taylor, a prominent domestic and international distributor of books and entertainment products to libraries and retailers.
Castle Harlan Australian Mezzanine Partners Pty Limited ("CHAMP Private Equity") was founded in 2000 by Australian Mezzanine Investments and Castle Harlan and is Australasia's largest independent manager of private equity funds. It is adviser to the CHAMP I and CHAMP II funds, which have funds of approximately A$1.5 billion for investment in buyouts in Australasia.
CHAMP Private Equity and its predecessor have made private equity investments in more than 30 businesses, including Austar Communications Limited, the provider of subscription TV services to rural and regional Australia, and Bradken Limited, a leading manufacturer of steel based consumables and capital equipment for the mining and freight rail industries.
Current CHAMP Private Equity investments include ADR, Australia's largest operator of discount department stores, and Manassen Foods, the leading importer and distributor of branded food products in Australia.