CPE Capital has exited construction industry safety equipment and consumables business Jaybro to Quadrant Private Equity.
Financial details of the transaction have not been disclosed but it has been speculated the deal values Jaybro at $600 million to $650 million.
Founded in 1996 by Stephen Joyce, a former construction industry site foreman, Jaybro was acquired by CPE Capital (then CHAMP Private Equity) in 2017 for an undisclosed sum, reported to be around $170 million. At that time, the business was believed to be generating annual revenue of around $100 million and EBITDA of more than $20 million.
Jaybro was already a fast growing and acquisitive business when CHAMP invested but the pace of acquisitions and geographic expansion increased under private equity control.
Businesses acquired since 2017 include: Defender Safety; Global Synthetics; DBF Tools and Hardware; Cadia Group; Hydro Construction Products and Polyfabrics Australia.
Jaybro now claims to be the leading supplier in its sectors to the civil construction and infrastructure industry in Australia and New Zealand.
During 2021, the company launched a digital marketplace. Other digital services include an in-house graphic design team and production facilities that enable delivery of customised signs to construction sites within 24 hours of order.
Jaybro was an investment from CPE Capital’s 2016 vintage $735 million CPEC 8 Fund. Six CPEC 8 investments have now been exited including Gourmet Food Holdings, Cell Care, Containerchain, Pepperstone and StraitNZ.
CPE has not announced closure of its $850 million target successor fund, CPEC 9, but it is known to have received commitments and a closure announcement is anticipated.
Quadrant has acquired Jaybro from its 2020 vintage $1.24 million QPE 7 fund.
Quadrant’s deal team was led by managing partner Alex Eady and included investment director Michael Hruby and investment analyst Alice Joe.