Buyers to look under the bonnet of Queensland's EGR
Queensland car accessories manufacturer EGR Group is revving up for a sale, Street Talk can reveal.
Queensland car accessories manufacturer EGR Group is revving up for a sale, Street Talk can reveal.
It is understood Moelis Australia had been hired to review capital raising options, which could include an initial public offering, the sale of minority stake to raise fresh equity, or a complete change of control.
EGR, which is owned by former BRW Rich-listers Greg and Rod Horwill, designs and manufactures accessories for car brands around the world.
Sources said the deal could fetch the Horwill brothers a sale price north of $200 million.
EGR looked at an ASX float in 2013, only to decide against the move. At the time, market darling ARB Corporation, which sells bull bars among other four-wheel-drive accessories, was considered the closest listed comparable, trading at 17 times earnings before interest, tax, depreciation and amortisation.
This time around, ARB shapes as a potential buyer alongside crash repairer AMA Group. An information memorandum has been sent to prospective acquirers, with the company and its advisers also targeting private equity firms and offshore players.
Brisbane-based EGR was founded in 1973 and employs over 800 staff in offices around the world.
Elsewhere, Wattle Health is raising $9.5 million via an institutional placement managed by JB Advisory and CCZ Corporate Finance.
According to a term sheet sent to fund managers, shares in the infant formula and wellness company are being offered at 56¢, a 3.5 per cent discount to the last close.
The raising will help to fund inventory, Wattle's share of the Blend & Pack acquisition, and joint venture commitments.