Anacacia Capital Bolsters Portfolio with Two New Businesses
Australian private equity firm Anacacia Capital has dipped into its recently closed 150 million Australian dollar (US$136 million) fund to make acquisitions in the education and healthcare industries.
The Sydney-based company is set to become the majority owner of Selmar Institute of Education and Managed Corporate Outcomes, two companies that are combining in a bid to tap the A$8.4 billion career-training industry in Australia.
Separately, Anacacia has agreed to buy the Oxford Group, a healthcare and veterinary equipment manufacturer that will be merged with Anacacia-owned K Care Healthcare Equipment.Financial terms for the two acquisitions weren’t disclosed.
“It’s great to see so much activity,” Jeremy Samuel, founder and managing director of Anacacia, said in an interview. “Education and healthcare are both hot sectors. We have been working on both opportunities for some time.”
In August, Anacacia closed an oversubscribed second fund that had originally sought to raise up to A$100 million. The company is targeting investments in private companies with revenues of between A$20 million and A$150 million.
Mr. Samuel said that although conditions had been fairly quiet for private equity of late, he was seeing interest from companies balancing succession issues as founders attempt to step back while at the same time trying to broaden their share register.
The investment in Careers Training Group, the new parent of Selmar Institute and Managed Corporate Outcomes, comes amid rising interest in the education sector.
Training company Vocation Ltd.VET.AU earlier this month listed on the Australian Securities Exchange with an initial market value of A$378 million. Its shares have risen more than 3% from the offer price.
For Anacacia, the deals follow the exit from two investments earlier this year. Consumer products company PZ Cussons (PZC.LN) PLC in July agreed to buy Australian baby-food brand Rafferty’s Garden Pty. Ltd. for GBP42.2 million (US$69.0 million). Anacacia in March completed the sale of its majority interest in Home Appliances Pty. Ltd. for A$22 million to McPherson's Ltd. (MCP.AU)