Acquisition of Neta Garden and PPI Wholesale and Irrigation Products Business – MEDIA RELEASE
Tuesday, 2nd April 2013
M&A Partners have advised the Lansell Group on the successful acquisition of the Neta Garden Products business and associated Wholesale and Irrigation businesses from PPI Corporation.
PPI Corporation appointed PPB Advisory as voluntary administrators on Jan 15 2013. Lazard Carnegie Wylie was a major shareholder (68%) having initially invested in PPI in 2007 at a 30% stake.
The Administrators sold PPI’s operations to two parties:
The Lansell Group A privately-owned Australian company with a a long and successful history in metal manufacturing, distribution and marketing.
David Moss Group An Australian manufacturer and supplier of PE and PVC pipes, fittings and underground ventilation systems to Australian and international markets has purchased the remaining business, including the mining, infrastructure and construction (MIC) operations.
The proceeds provide sufficient funds to pay in full all outstanding entitlements to employees that will not transfer with the business, administrators also estimate a return to unsecured creditors in excess of 25 cents in the dollar.
Stephen Longley of PPB Advisory commented: We are confident that with new owners in place, the respective businesses of PPI Corporation will grow and prosper as they continue to serve their respective markets.
Ric and Jeremy Lansell, co CEO’s of Neta Industries and the PPI Wholesale and Irrigation divisions commented, We see the acquisition of Neta and the wholesale and irrigation products as a fantastic opportunity for us to operate a business in which we know the key customers, markets and the manufacturing requirements needed to ensure the business is a success and continues to grow.
The business will trade as Neta Industries Pty Ltd, it will have manufacturing operations in Brisbane and Adelaide and warehousing in all major capital cities. With the acquisition, approx 120 existing jobs have been preserved.
The Lansell’s commented, M&A Partners provided the Lansell Group with strategic buy side advice across valuation, business assessment and deal structuring that made the transaction a success and enabled us to successfully acquire the asset in a highly competitive sale process.
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