KEY POINTS:
Local private equity firm Direct Capital has sold the Innovair Group to SC Johnson in the second private equity transaction to go ahead this week.
Direct Capital acquired a 28 per cent stake in Innovair, which manufactures and markets advanced automatic air dispensing systems, in September last year through its Direct Capital Partners III and Pohutukawa private equity funds.
Innovair is the number one selling pest control product company in New Zealand with a market share of 35 per cent and has a growing position in Australia. One of its main products is Rabocan, an insect control spray which uses pyrethrins. The value of the transaction has not been disclosed but Direct Capital said it expected the sale to produce a return on capital invested of over four times.
It said SC Johnson was well placed to continue to grow the business.
The transaction follows the announcement by Hellaby Holdings on Monday that it was selling its BBQ Factory business to private equity company Capital Group.
The BBQ Factory has said it is looking to expand its range into leisure equipment to help turn around the poorly performing business.
The deals continue the trend of a growing number of mid-market private equity deals, or those valued at below $150 million, in a year where deals at the top end have failed to materialise.
