2003 Media Releases

DB Capital Partners, the private equity arm of Deutsche Asset Management, today announced a significant investment on behalf of its client, the Local Government Superannuation Scheme (LGSS), in leading the management buy out of Australian mining services business, Waratah Engineering. The Newcastle-based company provides a range of services to the underground coal mining industry in Australia including equipment hire, machine rebuilds, spare parts supply and general repair and maintenance.

The management buy out will enable Waratah to continue to grow its engineering business, which currently employs around 80 local people. The buyout, for an undisclosed sum, was funded by a combination of equity from Waratah’s management team and RDT New South Wales 1 (RDT), a regional development fund managed by DB Capital Partners (LGSS is the founding investor in RDT), as well as term debt from Westpac.

Vice president at DB Capital Partners, Martin Donnelly, welcomed the opportunity to invest in the successful Newcastle company.

“Waratah provides essential equipment and services to one of Australia’s largest export industries – coal. The background and experience of the management team at Waratah is unsurpassed, and the company holds a dominant position within its market sector– two qualities we believe contribute to providing an attractive investment profile for our client.”

The management buy out team of six will be led by Mr Mark Kingshott, Managing Director. Over the past few years Waratah has grown its business through focusing its efforts on a narrower range of products whilst expanding the range of services it provides.

According to Mr Kingshott, “In our chosen market sector, we have established ourselves as a highly credible alternative to the OEM for top quality rebuilds and repairs. Although the ownership has changed, it is still very much 'business as usual' at Waratah. Providing a top quality service to our customers remains our primary objective.”

Kingshott will be joined on the board by Operations Director Mr Stuart Barclay, Mr Alex Varley and DB Capital Partners’ Martin Donnelly.

For further information

Waratah Engineering
Mark Kingshott, General Manager
Tel: (02) 49 535321

DB Capital Partners
Alan Kendrick
Tel: (02) 9249 9i72
or
Kristin Silva, Corporate Communications
Tel: (02) 9249 9568

About Waratah Engineering

Waratah has been owned and operated by the De Iullis family for over 20 years. The business operates from a purpose built site in the suburb of Cardiff, 20 kilometres from the Newcastle CBD and strategically located close to the Hunter Valley coal fields. Waratah hires and overhauls underground coal mining equipment (primarily continuous miners, feeder-breakers and shuttlecars) and provides spare parts and field service engineers, servicing the underground mines of NSW.

About DB Capital Partners

DB Capital Partners is the private equity arm of Deutsche Asset Management and is one of the largest managers of private equity funds in Australia, with more than A$1.4 billion in funds under management. Participating across the full spectrum of private equity investments, including infrastructure, venture capital, and development capital, DB Capital Partners’ investments have realised more than A$550 million to date. The team consists of 20 private equity professionals with more than 75 years collective experience.

About the Regional Development Trust

RDT New South Wales I (RDT) is a regional development trust established by the Local Government Superannuation Scheme and DB Capital Partners as a private equity investment vehicle, designed to access a broad range of investment opportunities, predominantly in regional NSW.