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19 June 2017

Alleasing to Make Mergers and Acquisitions in Australia and New Zealand


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Alleasing to Make Mergers and Acquisitions in Australia and New Zealand

businessmen shaking hands after merger Monash Private Capital

Last week, Alleasing CEO, Daniel Blizzard, spoke with mergermarket.com.au regarding Alleasing’s growth plans and our exciting new ventures into aviation, energy and medical financing. Read on to find out where Alleasing is headed.

Alleasing, a privately owned Australian provider of asset finance and leasing solutions, aims to make acquisitions in Australia and New Zealand, CEO Daniel Blizzard said.

The Sydney, New South Wales-headquartered company sees potential for growth in aviation financing, energy financing, the medical market – particularly small medical practices – and managed services, the CEO said.

Alleasing is focusing on the Australian and New Zealand markets for the time being. In the medium term, it aims to expand into other established, mature markets overseas, such as continental Europe and North America, however it will be two or three years before the company considers this move, Blizzard said. International expansion will start organically, but further investment could come in the form of M&A, he added.

Alleasing welcomes advisory approaches regarding specific targets, the CEO said. Its majority owner, Monash Private Capital, has an advisory arm, Blizzard pointed out – thus, the company has not retained any external advisor to advise on buys. The company works with Monash to look at opportunities on a continuous basis, he said. Alleasing has a number of strong relationships in the top five legal firms that it can call on when needed, he added.

Blizzard said the company can easily make investments of AUD 5m-10m (USD 3.8m-7.6m) but did not wish to name an upper limit for acquisitions. Alleasing is very profitable and Monash could also support acquisitions financially, he said. The business generates more than AUD 200m in rental contracts annually and has funded more than AUD 5bn of assets over the company’s history, Blizzard said.

Monash purchased Alleasing for around AUD 190m (USD 134m at the time) in October 2015, according to press reports. Its previous owner, CHAMP Private Equity, bought the company in 2008 from Allco Finance Group for AUD 146m.

Blizzard particularly mentioned managed services as an area that is experiencing fast growth. Alleasing has the expertise to deliver a total managed solution that integrates the services as well as the purchasing, funding and management of assets, he said. This service provision is a natural step from owning the assets, he said. Managed services is a new, very embryonic market, and any targets in this space would likely be very small, he continued, adding that Alleasing has yet to identify any such targets, but if it found one, it would strike.

Alleasing finances assets including agriculture, forestry and fishing equipment, medical equipment, manufacturing and construction equipment, IT and telecom equipment and mining equipment. It funds assets that other lessors such as banks do not, for customers that do not want to use senior debt or equity, the CEO said. Alleasing finances assets by leveraging other assets with little secondary market value, and few other players step up against the company to finance these deals, he said.

Alleasing is a portfolio company of Monash’s private equity arm, according to Monash’s website. Monash, however, is a long-term owner, according to Blizzard. Alleasing is a subsidiary of Monash and a core asset of it, a spokesperson for Monash commented.

By Christel Thunell in Sydney

 

Original article can be found at: https://www.mergermarket.com/intelligence/view/2449291

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