NRW taps Longreach for its tilt at BGC

Four or five parties have been shortlisted in the sales process for the BGC Contracting business.

NRW Holdings is understood to have tapped boutique advisory Longreach Capital as part of its efforts to buy BGC Contracting.

The Perth-based business is shaping as the frontrunner in the competition to buy the operation, and should it be successful a capital raising is on the cards, with another major bank such as UBS likely to emerge.

Longreach Capital is run by former Gresham banker Darrin Martin and has worked with NRW for some time.

The sales process for the BGC Contracting business, owned by the family of the late West Australian billionaire Len Buckeridge, is now believed to be into the second round with four or five parties shortlisted.

Also expected to be on the list are Ausdrill, Cimic and potentially Macmahon, although losing its chairman Jim Walker last week may have put the latter on the back foot.

Speculation has also been rife that Emeco could have been a suitor due to the opportunity to use the equipment for rental, although sources say it is not involved.

The theory among some is that a private equity firm is looking at BGC Contracting and may be partnering with an industry player.

The operation is up for sale as part of the liquidation of the Buckeridge family business empire. It is expected to fetch up to $400 million in the Macquarie Capital-advised sales process. A date for final binding bids is yet to be set.

BGC Contracting consists of three parts: contract mining; civil construction, which also involves some work in the resources sector; and DIAB Engineering, which provides mechanical and structural maintenance services to the resources industry.