20.07.2012

Australian crane group may float

McAleese group, owner of Walter Wright Cranes Australia, National Crane Hire and Australian Crane & Machinery, is hoping to join the Australian Stock Exchange later this year through one of the largest Initial Public Offerings on the exchange since 2010, which would value the business at around $1 billion.

JP Morgan and Credit Suisse are advising McAleese on the IPO, which is based on a six times multiple of Earnings Before Interest, Tax, Depreciation and Amortisation number of $180 million.

Some of the funds will be used to pay for an option the company has to acquire the crane, lift and shift company LCR Group from Champ private equity. It already purchased International Energy Services from Champ in April, paying a multiple of around five times EBITDA.

LCR has a sizeable fleet of mobile cranes as well as tower cranes and transport, and focuses its business towards serving the mining and energy sectors.

McAleese chairman Mark Rowsthorn and chief executive Paul Garaty currently own a controlling interest in the business and are expected to maintain that after the flotation.

McAleese has been highly acquisitive over the past two years and tried to acquire Boom Logistics in 2010 in a long running cat and mouse game which drew up short of a formal bid. See Boom dismisses takeover ‘bid’