US-based private equity firm Madison Dearborn Partners has tapped investment banks UBS and Credit Suisse along with Goldman Sachs for its $2bn float of disability employment service provider APM.
It comes after Madison Dearborn purchased the business from Quadrant Private Equity last year for about $1.5bn.
This was after testing market interest in 2019.
The company had been in Quadrant’s No 5 fund and is Australia’s largest privately owned human services provider, also operating in New Zealand, the United Kingdom, Europe, Asia, Canada and the United States, with a workforce of more than 7500 people.
Quadrant Private Equity co-owned the business with its founders Bruce Bellinge and Megan Wynne, who started the business in 1994.
The investment was believed to have been a lucrative one for Quadrant and will no doubt be popular with equity investors.
In 2019, it was generating about $80m of earnings, with its performance greatly helped by work linked to the National Disability Insurance Scheme.
APM has more than 800 locations across 10 countries and offers job seeker, disability, workplace health, National Disability Insurance Scheme support and home assessment services.
The Perth-based business describes itself as the trusted provider of the government’s disability employment services in more regions across Australia than any other organisation.
EY partner Michael Anghie was hired as the group chief executive in 2018 while Megan Wynne, originally an occupational therapy graduate, remains the managing director.
Ms Wynne has grown the business to become a world leader in human services.
Revenue for NDIS providers has grown considerably over the past five years, as government funding has continued to increase, according to IBISWorld.
It is anticipated to continue growing over the next five years, albeit at a much slower rate compared with the previous five-year period.
IBISWorld says operators that provide NDIS services are anticipated to be only lightly affected by the Covid-19 pandemic, as most elements of the service are considered essential and can operate under all levels of Covid restrictions.
Revenue for NDIS providers is forecast to increase at an annualised 4.7 per cent over the five years through 2025-26, to $32.3bn.
APM is looking to list as a number of campaigns for floats set to happen by December are getting ready to ramp up.
SG Lotteries, which has hopes of achieving a $10bn-plus enterprise value, is starting its management roadshow at the end of September.
A sale of the Las Vegas-based business as well as float is also being considered.
Working on the IPO are Jarden, Macquarie Capital, Morgan Stanley, UBS and Goldman Sachs.
Judo Bank is pressing on with its ASX float, with a formal investor roadshow and broker research slated to land mid-September before it is due to head to the boards around November.
Working on that transaction are Citi, Goldman Sachs, Credit Suisse and Barrenjoey Capital Partners.
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