LAWFUEL – The Law News Network – Linklaters has advised Waco International Limited (‘Waco’) on its ZAR 5.4bn acquisition by CCMP Capital Asia (formerly JP Morgan Partners Asia) and Waco’s senior management team. JP Morgan Partners Global Fund is also investing in the deal. The transaction was announced on 17 January 2006.
Waco is an industrial services business, headquartered in Johannesburg and principally operating in South Africa, Australia, New Zealand and the UK. Its two main lines of business are forming, shoring and scaffolding, and temporary modular buildings. The business was bought from investors led by South Africa’s Ethos Private Equity, which led a ZAR 2.4bn buy-out of Waco in 2000.
The sale of Waco had been run as a twin track JSE IPO/trade sale process in order to obtain the best possible price and sale terms for Waco and its private equity shareholders.
Linklaters’ team was led by corporate partners Charlie Jacobs and Jennifer Schneck. Charlie Jacobs, who also heads Linklaters’ South African business group, said:
“The leveraged buy-out is the largest ever private equity deal in South Africa and Australia to date, and highlights the continuing flow of capital into South Africa.”
UBS (South Africa, Australia, UK) acted as financial adviser, global co-ordinator, bookrunner and sponsor; Standard Bank acted as co-lead manager; and Citigroup, Capital International and Ethos represented the selling private equity investors of Waco.
The legal advisers were: Fluxmans Inc., South African counsel to Waco; Freehills, Australian counsel to Waco; Baker and MacKenzie, Australian counsel to JP Morgan; Cliffe Dekker, South African counsel to UBS; Allen & Overy, US and English counsel to UBS; and Bowman Gilfillan Inc., South African legal adviser to UBS.