Navis Capital exits Trio for $220-m

Kuala Lumpur-based private equity company Navis Capital Partners has sold its 100% stake in Trio Engineered Products, to Weir group PLC, at an enterprise valuation of $220 million.

Trio, which is expected to generate about $120 million in revenues in 2014, is a Chinese-American manufacturer of crushing and separation equipment for the mining and aggregates markets. Close to a third of its revenue comes from North America and about a fourth from China, with the remaining 40% spread across Australia, South American and Europe.

Navis acquired a controlling stake in Trio in August 2009. During its five years of ownership, Navis had worked with the management team to expand Trio’s addressable market, resulting in it entering new geographies and verticals, the firm said in a statement.

For the Glasgow-based Weir Group, the acquisition will help expand its mining services businesses.

Navis managing partner Nicholas Bloy said exiting Trio and selling it to Weir was part of a long tradition of the private equity firm to selling its businesses to strategic trade buyers.

“We have always believed that trade buyers make the best partners for our companies after our period of ownership, and this allows us to exit our investments cleanly, even amid periods of public market uncertainty,” he said in a statement.

Under Navis’ ownership, Trio achieved a five-year revenue compounded annual rate of return of 20% with earnings before interest, depreciation and amortisation increasing by almost three times. The company paid dividends every year with its strong cash-flow generation capabilities, Navis said.

“This was notwithstanding an ownership tenure coinciding with several periods of weakness in the global economy as well as in mineral prices,” the Navis statement added.

The Malaysia-based equity firm previously sold another of its businesses, industrial rubber parts and related mineral processing equipment manufacturer Linatex, to Weir in September 2010 for about $200 million, netting it almost 5.5 times its initial investment.

Navis manages approximately $5 billion in equity capital with over 60 control transactions completed since its establishment in 1998.

 

 

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.