It has just signed off on two defence purchases: TAE Aerospace and RUAG’s Australian operations.
For the uninitiated, TAE maintains engines for Lockheed Martin’s F-35 aircraft; RUAG is owned by the Swiss government.
CPE plans to add the two acquisitions to its defence and aerospace contractor, ASDAM, which already owns Marand Precision Engineering and Levett Engineering.
It’s a lot of words that don’t exactly roll off the tongue, but the bottom line is that CPE has quietly cobbled together a business that could be big enough to have a run at the ASX boards or land on a suitor’s radar.
The buy-and-build strategy is alive and well at Sydney-based private equity shop CPE Capital, which is beefing up its defence and aerospace contractor ASDAM.
Australia’s third-biggest rural supplies group has hired UBS to help find a deep-pocketed new investor that will be able to replace its private equity backer
The fact that it was able to top up its stake to the maximum allowed was as good a sign as any that there will be some pressure on Nitro to lock in a bid.
PAG has also been thinking about potential plays in the sector to create a group that would have a big presence in the frozen section of Aussie supermarkets.
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