Grant Thornton has advised East West Engineering, a privately held supplier of forklift attachments and material handling equipment, on its sale to Arbor Permanent Owners.
The acquisition is Arbor Permanent Owner’s cornerstone initial investment, with plans to build a portfolio of strong Australian businesses as other business owners seek succession options.
Arbor has a unique investment model in which there is no fund life, meaning its capital remains permanent and the ownership strategy is based on incremental growth compounded over a long period of time.
Operating out of Brookvale on Sydney’s northern beaches, Ron King established East West Engineering in 1981. Its products serve a variety of industries, including construction, farming, infrastructure, manufacturing, mining, and warehousing.
The company has become renowned for its vast product range and is recognised for its quality and reliability and continuous innovation.
After building East West Engineering over four decades, King sought a new owner to continue his legacy and to ensure a smooth transition of ownership for the business, its customers, and employees.
King says Arbor’s permanent holding outlook was attractive in providing stability of ownership.
Grant Thornton Australia is seeing many business owners nearing retirement age, who are interested to explore options to realise value from their business, according to Holly Stiles, Partner and National Head of Corporate Finance.
“There is a broad spectrum of potential acquirers and investors, and it is very rewarding to find the right fit for the business and the shareholder,” Stiles says.
East West Engineering offers an extensive range of materials handling products that increase the flexibility and use of customers’ handling equipment and machinery. The company is experienced in manufacturing customised products for customers to create solutions to meet individual requirements, resulting in an extensive catalogue of products covering over 3,000 SKUs and 8,000 developed products.
Arbor is a collection of entrepreneurs, CEOs, and investors that seeks to create value across industries, geographies, and economic cycles. With a base of permanent capital and a multi-decade investment horizon, Arbor has no intention of selling or trading a business.
Without a fund life, its capital remains permanent and investor returns are “measured in decades, not fundraising cycles”. Its ownership strategy is based on sustainable incremental growth which compounds over a long period of time.
Write to Adam Orlando at Mining.com.au
Images: East West Engineering
