SYDNEY, AUSTRALIA (Nov. 21, 2 p.m. ET) — Polypropylene coathanger division Braiform has been carved out of Spotless Group Ltd. and now reports directly to Sydney-based private equity firm Pacific Equity Partners Pty. Ltd. (PEP).
PEP took ownership of Melbourne-based industrial services company Spotless Aug. 17 after lengthy negotiations, buying it for A$722 million. Shares sold for A$2.71 a share, which was nine cents below Spotless's original asking price.
PEP spokesman Justin Clark confirmed Braiform is trading separately to Spotless, but is still owned by PEP. He would not comment further.
Plastics News understands PEP decided to separate the two because they have very different focuses. It is a strategic decision because Spotless is a facility services business and Braiform's business is plastic manufacturing.
Braiform supplies PP coat hangers, packaging and hanger re-use programs to 32 countries, including the United States. Spotless's 2012 interim results, released in February, showed that from July 1, 2011, to Dec. 30, 2011, Braiform's earnings before interest, tax, depreciation and amortization declined 42.7 percent to US$5.13 million.
Bruce Dixon became Spotless CEO when PEP took ownership of the business. He was managing director of Melbourne-based healthcare services provider Healthscope Notes Ltd. from 1997 to 2010. Before Healthscope, he was a Spotless senior executive.