Private equity firm exits underperforming asset

Quadrant Private Equity has exited one of its longest held assets, Barbeques Galore, selling the underperforming asset to special situations-focused global asset manager Gordon Brothers.

Confirming the acquisition, Gordon Brothers provided no financial information. It is believed the Boston-based firm acquired Barbeques Galore for a low valuation and took on the company’s debt.

Gordon Brothers is represented in Australia by senior managing director Matt Aubrey.

Gordon Brothers said it was supporting Barbeques Galore’s “ongoing transformation”. New chief executive David White, a former Metcash executive, joined the business on 8 December and would “focus on the next phase of growth”.

Barbeques Galore, which advertises itself as “Australia’s leading retailer of BBQs, outdoor furniture, wood heaters and BBQ accessories”, was founded in 1977 and has more than 90 franchised and company-owned stores across Australia.

Quadrant acquired majority stakes in Barbeques Galore and furniture retailer Super A-Mart (now Amart Furniture) from Ironbridge Capital in 2012 and rolled the two businesses into a single entity. Quadrant later acquired remaining stakes from Ironbridge and other investors.

Quadrant did not reveal the sum it paid for the businesses, but at the time it was speculated to be in the range $100 million to $160 million. A fresh five-year debt package of around $250 million was also arranged at that time for the holding entity. 

In August, Quadrant backed Amart Furniture’s acquisition of Freedom Furniture from Greenlit Brands. It has been speculated that Quadrant might seek an ASX listing for the combined platform of around 120 stores across Australia and New Zealand which has combined annual revenue of close to $1 billion.  

Announcing the appointment of White as its new chief executive, Barbeques Galore said he would “build on the successful tenure of outgoing chief executive Alex Foster whose vision and leadership established the existing turnaround strategy”.

“White brings a wealth of experience and a passion for Australian retail to the role, with experience leading national and international businesses across the retail spectrum.

Image: Barbeques Galore was sold as a business undergoing transformation.