www.repco.com.au
In September 2001, Gresham Private Equity 1 invested $30 million into the management buyout of Repco from Pacific Dunlop Limited. Repco is a leading automotive aftermarket parts and accessories wholesaler and distributor in Australia and New Zealand, operating under the 'Repco', 'Ashdown' and 'Motospecs' brands.
The buyout was led by Gresham Private Equity with Credit Suisse First Boston providing senior and subordinated acquisition debt facilities for the transaction as well as a working capital facility.
Private equity ownership
In just over two years of private equity ownership several major value creating initiatives were successfully implemented. These included significant working capital reduction, improved inventory management and stock control, sale of the underperforming CarParts business and a major refinancing.
Exit
On 20 November 2003, Repco was listed on the Australian Stock Exchange via an initial public offering which resulted in a complete exit by Gresham Private Equity. This was the largest IPO to date of an Australian private equity investment.
The exit of Repco is a significant milestone for the Gresham Private Equity Fund I, achieving an IRR of 146 per cent per annum and a money multiple return of 5.5x.