Castle Harlan Sells United Malt to GrainCorp of Australia

November 18, 2009 Debbie Jacobs In the News

Private equity firm Castle Harlan saw a 450 percent increase in its investment of United Malt Holdings, the world’s largest producer of malt. Together with its Australian partner Champ Private Equity, Castle Harlan sold the portfolio company to Australia’s GrainCorp for $655 million.

Champ and Castle Harlan first purchased United Malt in 2006 from Conagra Foods and Tiger Brands for the relatively low price of $90.54 million. Castle Harlan owned about 55 percent of the shares, while Champ owned the remaining 45 percent. Although the total dollar return on the money invested comes to 4.5 times more, the internal ROR is closer to 80 percent, still a nice payoff.

In another article of related news, Castle Harlan is poised to make see a 250 percent return on investment after only one year when it sells the tubing manufacturer RathGibson to DLJ Merchant Banking Partners.

A private equity arm of Credit Suisse Group, DLJ Merchant Banking, announced that it is planning to pay $440 million for RathGibson.

Castle Harlan, Champ Private Equity, GrainCorp,

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