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The RIX Group of Companies (“The RIX Group” or “The Group”) engaged Nash Advisory and The Eights to run a sale process for up to 100% of The Group.
This transaction included nine individual entities and three operating businesses: RIX Specialist Contracting (“RIX”), RIX Asset Maintenance (“RAM”) and RIX Ground Engineering (“RGE”).
As Australia’s largest specialist geotechnical contractor, The RIX Group employs over 400 staff across verticals including ground anchoring, slope stabilisation, shotcrete, piling, rope access and ground improvement.
Following a global marketing campaign, Nash Advisory and the RIX Group selected Italian based Ghella as the successful bidder. Ghella acquired a majority stake and will work alongside existing Shareholders to deliver the next phase of the Group’s growth.
Industrial, Infrastructure & construction
RIX Specialist Contracting (RIX) was founded in 2000 and quickly developed a reputation as a leader in complex ground engineering. Since then, the Group has successfully launched two new businesses (RAM and RGE) to become Australia’s leading diversified geotechnical engineering contractor.
Following a period of sustained growth, the Director’s of the RIX Group engaged Nash Advisory and The Eights to find a strategic partner for future growth. Key criteria for this partner included:
1. The ability to implement systems and processes that would support the Group’s ongoing expansion
2. Strong cultural alignment with a focus on safety, employees and quality
3. A commitment to executing a straightforward and clean transaction
Nash Advisory project managed an extensive vendor financial and legal due diligence process prior to approaching the market. This process involved the review of more than 1,800 documents and in-depth financial analysis to ensure The RIX Group was prepared for a sale process involving highly sophisticated buyers. The deliverables from this process were eventually relied upon by the Buyer to expedite their own due diligence.
Leveraging its international network, Nash Advisory engaged with a highly targeted group of potential buyers from around the world. Meetings were held with buyers in France, the United States, Spain, Malaysia, the United Kingdom, Canada and Germany, among others. Ghella, headquartered in Italy emerged as the successful bidder.
Nash performed a comprehensive analysis of key operating metrics to clearly illustrate the financial and operational evolution of the business. This included project-by-project profitability analysis, a detailed breakdown of pipeline and work in hand, assessment of historical and forecast return on invested capital and detailed modelling of various strategic initiatives driving the growth of the business. This analysis was key to providing bidders with confidence in The Group's continued growth.
Given each entity within The Group had distinct shareholders and ownership structures, Nash Advisory tracked and modelled the working capital and net debt estimated adjustment on a monthly basis for all nine entities. Regular updates and forecasts were provided to The Group’s shareholders to ensure they fully understood the adjustment process and felt confident moving forward with the transaction.
Nash Advisory was engaged to undertake a sale process for The RIX Group.
Soft sounding begins. Financial and Legal VDD also begins.
VDD results received and IM sent to market.
Marketing materials and direct buyer engagement begins.
First round of offers received.
Terms sheet signed with Ghella.
Due diligence begins. Nash provides a revised forecast which included a large increase in revenue. In April 2024 a revised offer from Ghella is submitted.
Final terms sheet signed and definitive agreements begin to be negotiated. In August final agreements are signed and transaction is completed in September 2024.
When it comes to selling your business, Nash Advisory offers a highly detailed and extremely thorough process that produces the best possible results.
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