The $3bn sale process for Loscam could be about to take an interesting turn that may see big names in Australian logistics turn up for the auction.
There’s suggestions that Loscam’s owner China Merchants, together with adviser UBS, is considering whether to split the operations and sell them off separately.
Buyers have been under the impression that all of the Loscam operations are up for sale in one line, including the Australian, New Zealand, Chinese and Southeast Asian operations.
But there’s now an understanding that Australia and New Zealand could be sold to one buyer and the Asian operations to another.
It makes sense that the vendor would keep its options open to determine how to achieve the strongest price.
Should the business be sold in two separate lines, the understanding is that the $20bn logistics giant Brambles could be in line to buy the Asian unit.
As earlier reported by this column, UBS has about 10 parties taking a look at Loscam, including private equity firms Kohlberg Kravis Roberts, Brookfield and EQT.
Infrastructure investors are also expected to be in the line-up as part of the latest sale process.
The understanding is that the annual earnings before interest, tax, depreciation and amortisation for the combined operations are at least $200m.
Loscam’s owners are looking for a price somewhere between 13 and 15 times EBITDA, which could put the sale price at more than $3bn.
Loscam assets were expected to return to the market around the middle of this year as reported by DataRoom in February.
Last time, just the Australia and New Zealand business was up for sale by owner China Merchants. Bids came in below expectations.
When the Australian and New Zealand arm was for sale, it was understood to have been generating about $100m of annual EBITDA.
Loscam describes itself as a trusted name in pooling and returnable packaging solutions for supply chains.
China Merchants purchased the business in 2010 for $US650m in a deal involving Credit Suisse and Deutsche Bank, and in 2018 it sold down a 55 per cent interest to CITIC Capital Partners and FountainVest.
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