Bartercard International Sells Australian Arm For $25.5 Million
London-based
Bartercard International has completed its privatization and also
sold, on August 2, Gold Coast-based Bartercard Australia for A$25.5
million. The board of Bartercard is also proposing to pay at least
A$10 million in special dividends to shareholders. (Payment is
likely to take place within the next 60 days.)
Funding for
the A$25.5 million purchase was provided by the National Australia
Bank, along with Bartercard International�s vendor financing of A$6
million for the balance. Bartercard Australia will continue to be a
licensee of Bartercard International and will pay annual licensing
fees of A$2.5 million.
The Australian
arm [Bartercard Australia] has 23,000 members, and was acquired in a
management buyout led by Brian Hall (a company founder), Murray
D�Almeida (Executive Director of Sales), and Trevor Dietz (Managing
Director of Bartercard Australia).
Hall,
D�Almeida, and Dietz will have 75% ownership of Bartercard
Australia, with the balance held by a private equity company�CAT
Capital. Bartercard International will retain a 0.5% stake.
According to
Wayne Sharpe the moves represent a major step forward for Bartercard,
both in Australia and internationally.
�Businesses
can do better when management has ownership and this was the
reasoning behind the management buy-out (MBO). Evidence of this was
the MBO of Bartercard New Zealand from Bartercard International five
years ago. They have achieved impressive growth,� Sharpe asserted.
Sharpe says
the company will also sell its UK operation as part of a new
strategy to focus on being an international licensor, rather than a
licensee. Selling the Australia and UK licenses will allow
Bartercard International to expand its European network and push
into the USA.
Founded in the
Gold Coast in 1991 by Wayne Sharpe, Andrew Federowsky and Brian
Hall, the company now has 58 offices in Australia. Bartercard
International was formed in 1996 and has grown to become the world�s
largest trade exchange...with operations in twelve (12) countries
including the UK, Asia, and the Middle East. Planned expansion in
the future will include India and South Africa.
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