AMP's Jeminex makes four acquisitions, appoints CEO

Unlisted company The Jeminex Group has announced the acquisition of four industrial supply businesses, including three based in Perth, and the appointment of former Wesfarmers exective Mark Allison as its new chief executive.

The acquisitions, with a total enterprise value of $40 million, include industrial packaging company Network Packaging, electricity product supplier Bri-Tech, industrial workwear wholesaler Noble Agencies and drilling service provider Impact Drilling.

Established in 1995 in Perth by John Smith, Noble Agencies is an importer and wholesaler of industrial clothing brand "Worksense" throughout Australia and New Zealand. The company's products include work wear, safety vests, jackets and overalls for industry, corporate clothing, waterproof industrial clothing as well as sunscreen products, reflective and school wear.

Based in Malaga, Bri-Tech is a specialist distributor of a diverse range of electric power distribution and transmission products. Established in 1984 by Brian Peat, the company's customer base includes power utilities, mining, heaving industry and electrical contractors throughout Australia and New Zealand.

Network was established in Perth in 1989. It provides a wide range of packaging supplies to major state, national and international companies from the industrial sectors through to primary industries.

Network will trade as a division of Heatley, another Perth business already owned by Jeminex.

A Jeminex announcement is pasted below:

Jeminex Group announces the acquisition of four new businesses

The Jeminex Group, a leading Australian provider of industrial components to the resources sector, today announced the acquisition of four new businesses for a total enterprise value of $40 million.

The acquisitions include industrial packaging company Network Packaging, electricity product supplier Bri-Tech, industrial workwear wholesaler Noble Agencies and drilling service provider Impact Drilling.

AMP Capital Investors' Private Equity Fund III is the largest investor in the Jeminex Group. Other shareholders include members of the board and senior management. The company imports, converts and distributes industrial consumables and components in fields of lifting and rigging, personal safety, workwear and industrial packaging through its three existing businesses, Beaver, Australian Safety Specialists and Heatley.

Jeminex is heavily focused on the resources, mining, energy and construction sectors in Australia, with a particularly strong presence in the resource states of Western Australia and Queensland through a comprehensive branch network.

Jeminex's Chairman, Kevin Clarke, said that the acquisitions represented a significant opportunity to grow and enhance the company's overall footprint in the fast-growing resources and heavy construction sector.

"Network Packaging, Bri-Tech, Noble Agencies and Impact Drilling are attractive businesses that complement the overall Jeminex strategy.

"Each of these businesses has a strong track record of consistent earnings growth and they represent a good strategic fit with our existing operations" Mr Clarke said.

"The businesses have experienced management teams in place, desirable customer bases and provide real scope to enhance the Jeminex growth profile," Mr Clarke added.

The acquisitions are expected to increase Jeminex's annual revenues to approximately $200 million and to boost its annualised EBIT to approximately $20 million.

Jeminex Group announces the appointment of Mark Allison

The Jeminex Group, a leading provider of Australian industrial components to the resources sector, today announced the appointment of Mark Allison as Chief Executive Officer.

Mark Allison is the former Managing Director of Farmoz, Wesfarmers Landmark and Wesfarmers CSBP, and has extensive experience spanning 25 years in the agribusiness sector. Prior to his appointment at Wesfarmers in 2001, Mr Allison worked with Incitec Limited, Monsanto Australia Limited, Pitman-Moore and as a General Manager of the Orica business Crop Care Australasia.

Jeminex Chairman, Kevin Clarke, said that Mr Allison is a highly credentialed executive who will play a significant role in driving the next phase of growth for the company.

"Mark has consistently achieved high standards of excellence throughout his career and I look forward to having him lead the Jeminex team," Mr Clarke said.

Mark Allison said: "Jeminex is a business with real growth potential operating in a boom sector in Queensland and Western Australia.

"I look forward to working with the company to realise this potential," Mr Allison added.

Mark Allison will commence as the CEO of Jeminex on the 28th of May 2007.

The Jeminex Group is 60% owned by private equity funds managed by AMP Capital Investors and 40% owned by management. The company imports, converts and distributes industrial apparatus and supplies in material handling, personal safety and industrial packaging through its three existing businesses, Beaver, Australian Safety Specialists and Heatley.

Jeminex is heavily focused on the resources, mining, construction and general engineering sectors in Australia, with a particularly strong presence in the resource states of Western Australia and Queensland.

BACKGROUND

The Jeminex Group

Jeminex is an Australian industrial group that specialises in distributing a range of consumables and components to the resources, energy and construction sectors. They manufacture, import, and distribute products in the categories of lifting and rigging, personal safety, workwear, packaging and tapes and electrical power transmission.
Jeminex owns and operates the businesses of: - Heatley, Beaver, and Australian Safety Specialists. Jeminex recently acquired four additional businesses that compliment these three core businesses. The new acquisitions are Network Packaging, Bri-Tech, Noble Agencies and Impact Drilling. The group has annualised revenues post the recent acquisition of approximately $200 million with a particularly strong presence in the resource states of Western Australia and Queensland.
Jeminex has built a leading position in its market through a combination of technical and product expertise, quality products sourced from leading local and international manufacturers and a comprehensive 23 branch network which offers high levels of customer service.
AMP Capital Investors' Private Equity Fund III is the largest investor in the Jeminex Group. Other shareholders include founders and management of the trading businesses.
Jeminex's Chairman, Kevin Clarke, was CEO of ASX 200 listed industrial group Alesco Corporation Ltd from 1995 to 2006. Deputy Chairman Geoff Heatley established Heatley Sales in 1987 and has 35 years of experience in the industrial consumables market. Both are substantial shareholders in Jeminex.
Jeminex announced in May 2007 the appointment of Mark Allison as CEO, a senior executive of the Wesfarmers Group from 2001 to 2004.

Industrial Consumables

Heatley
Heatley is a distributor of a wide range of industrial components and consumables including sealants and adhesives, glazing and fabrication, welding and fasteners, packaging and tapes, and general industrial and safety.
Established in Perth in 1987 by Geoff Heatley, the company today generates annual sales of $65 million from a comprehensive branch network throughout Western Australia and South Australia.
Heatley's product offering includes their own quality brands and recognised international brands designed to satisfy the needs of a wide spread of customers in the mining and construction sectors of Western Australia and South Australia.

Network Packaging
Established in Perth in 1989, Network provides a wide range of packaging supplies to major state, national and international companies from the industrial sectors through to primary industries.
The company represents a number of national and international manufacturers and is the sole Western Australian distributor for Signode Strapping Systems. Network is a division of Heatley and complements Heatley's packaging activities.

Lifting and Rigging

Beaver
Beaver provides a range of products and technical services in the categories of lifting, rigging, moorings, load restraints, fall prevention, rescue equipment and personal safety.
Established in Sydney in 1977 by Chris Di Losa, Beaver has over many years developed its own quality range of lifting products under the B-Safe and Beaver brand names whilst also representing in Australia a number of renowned international manufacturers such as Weissenfels, Yale, and Slingmax.
It operates a seven branch distribution network in Melbourne, Sydney, Perth, Bundaberg, Mackay, Brisbane and Adelaide, which generate annual sales of approximately $45 million.
Beaver provides products and services to customers within the mining, construction and transport sectors with a particular focus on Western Australia, North Queensland and the Hunter Valley.

Personal Safety and Industrial Workwear

Australian Safety Specialists
Australian Safety Specialists provides specialist safety equipment and industrial clothing to the mining, resources, construction, and general industry sectors and was formed in 1997 in Sydney by David and Phillip Waller.
Through an overseas sourcing subsidiary, World Wide Sales, the company has developed its own proprietary branded product range called Frontier which is rapidly becoming one of the leading safety and clothing brands in Australia.

Based in Sydney, the Australian Safety Specialists operates branches in Newcastle, Brisbane, Mackay, Adelaide, Melbourne and Whyalla, generating annual sales of approximately $30 million.

Noble Agencies
Established in 1995 in Perth by John Smith, Noble Agencies is an importer and wholesaler of industrial clothing brand "Worksense" throughout Australia and New Zealand. The company's products include work wear, safety vests, jackets and overalls for industry, corporate clothing, waterproof industrial clothing as well as sunscreen products, reflective and school wear.

The company sells through five Worksense branded retail outlets in Western Australia and Northern Territory in addition to a network of distributors and agents throughout the other states.

Electrical Power Transmission

Bri-Tech
Bri-Tech is a specialist distributor of a diverse range of electric power distribution and transmission products. Established in 1984 by Brian Peat, the company's customer base includes power utilities, mining, heaving industry and electrical contractors throughout Australia and New Zealand.
The key products comprise surge arresters, insulators and voltage regulators sourced from leading international manufacturers Hubbel, ABB and GE.
Based in Malaga, Perth, Bri-Tech's distribution network includes sales and distribution facilities in Sydney, Brisbane, Melbourne and Auckland.

Drilling

Impact Drilling
Established in Melbourne in 1999 by Martin Micallef, Impact Drilling is the largest provider of drilling and a major provider of blasting and related services to the quarrying sector in Victoria.
The company comprises Impact Drilling Pty Ltd, Quarry Systems Pty Ltd and Laser & Measurement Devices Pty Ltd (LMD) and generates sales of approximately $8 million.
Impact Drilling provides surface drilling services such as blast holes, soil nails and anchor bolts. Quarry Systems offers a range of blasting services including face-profiling and environmental monitoring. LMD is the Australian distributor for the products of Measurement Devices Ltd of the United Kingdom, and sells equipment and provides calibration services.