The Carlyle Group Acquires a Significant Minority Stake in Bis Industries
Carlyle’s Special Situations Platform Broadens Footprint in Asia
Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has become a strategic minority shareholder in Bis Industries following its comprehensive financial reorganisation. Bis is a Perth-based provider of specialised logistics and materials handling solutions for the world’s biggest mining and resource companies. The investment was made by Carlyle Strategic Partners IV (CSP), Carlyle’s special situations investment platform.
As a result of this recapitalisation transaction, Bis has a significantly de-levered balance sheet, with its pre-restructure gross debt reduced from approximately A$1.2 billion to approximately A$280 million plus A$38 million of financial leases. Following this balance sheet reset, funds managed by Carlyle and Värde Partners are the majority equity owners of Bis under a new holding company.
CSP built its position in the senior bank debt of Bis over the course of a year to become one of Bis’ largest senior secured creditors and played a key role in implementing a comprehensive restructuring. In total, senior secured creditors (including Carlyle and Värde Partners) own 96% of the shares in Bis, with the remaining 4% owned by the former PIK note holders.
Bis’ recapitalisation was overwhelmingly approved by the company’s stakeholders, with 100% support from voting senior lenders and PIK note holders. The transaction was also approved by the Supreme Court of New South Wales, Australia.
Ian Jackson, Managing Director and Co-Head of Carlyle Strategic Partners, said, “Carlyle has strong confidence in the future of Bis. The restructuring meaningfully delevers the business, puts it back on a stable footing and positions it for growth. This investment out of our CSP IV fund also strengthens our current presence and commitment to the region. With deep industry expertise and global resources and network, we look forward to working with Brad Rogers, his experienced team and other company shareholders to realize Bis’ full potential.”
Brad Rogers, CEO of Bis, said, “This recapitalisation ensures a sustainable capital structure and significantly improved flexibility for our business. Throughout the recapitalisation process, Bis continued to provide consistent, reliable service that we have delivered to customers since 1915. Now, with an enhanced balance sheet, Bis is well positioned to meet the requirements of new and existing customers, and pursue growth opportunities. We look forward to working with Carlyle, Värde Partners and other new shareholders to further strengthen our business.”
Equity for the transaction came from Carlyle Strategic Partners IV L.P., Carlyle’s Special Situations & Corporate Opportunities fund. The fund has previously invested in a number of other industrial and manufacturing companies, including KAP Beteiligungs-AG, a diversified German industrial conglomerate; Klenk Holz AG, a German manufacturer of wood products; and Brintons, a global manufacturer of specialist woven carpets for residential and commercial premises.
The senior lenders were advised, among others, by Houlihan Lokey and Herbert Smith Freehills.
About Bis Industries
Bis Industries is an Australian provider of specialised logistics and materials handling solutions for the world’s biggest mining and resource companies. Bis’s 1,250 employees process, handle and haul millions of tonnes of materials across Australia and Indonesia, taking responsibility for critical but non-core processes, integrating people, funding and technology. www.bisindustries.com
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $174 billion of assets under management across 306 investment vehicles as of September 30, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.