In a significant deal for the private equity sector, Archer Capital has announced an agreement to sell the Cellarmasters Group to Woolworths Ltd for an enterprise value of $340 million. Cellarmasters is one of the largest direct-to-home wine retailers and providers of contract bottling and wine services with operations in Australia and New Zealand. The deal is expected to complete in May, subject to regulatory approvals.

Jon Schahinger, Managing Director of ING Private Equity Access Limited (ING PEAL) congratulated the Archer Capital team on the deal.

“This is an excellent result in a difficult market environment. Archer has again delivered a strong return – almost 3 times the investment’s cost over its four year holding period and above its recent carrying value,” Mr Schahinger said.

The other, smaller transaction is the sale by NBC Capital of its investment in Troncs Holdings, a Queensland trucking business. While, the business has been affected by the volatile Queensland weather conditions, it has been sold for approximately 1.2 times its original cost.

These two deals add to the previously announced sales of Bledisloe Holdings by Propel Investments and Tegel Poultry by Pacific Equity Partners which should be completed over the next few months.

“It is pleasing to see the continued flow of realisations that will return cash to the company” said Mr Schahinger.

“We are aware of a number of other sale processes underway which could only enhance this great start to the year. The portfolio is in good shape overall and we look forward to announcing further positive news in the months ahead,” he said.

More details on ING Private Equity Access Limited and its investments can be found at www.ingpeal.com.au.

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The Bledisloe Group has built a strong suite of brands across Australia and New Zealand to emerge as New Zealand’s largest provider of funeral services and as one of the top three operators in several key Australian markets. It will be acquired by InvoCare Limited (ASX code: IVC) for A$114 million.

Jon Schahinger, Managing Director of ING Private Equity Access Limited (ING PEAL) commented that the sale was a great example of a classic private equity strategy – “buy and build” in a disaggregated industry.

“Propel Investments identified the funerals sector as one well suited to a buy and build strategy and acquired Bledisloe in December 2005. It subsequently grew the business organically and via acquisitions in both Australia and New Zealand. The acquisition by InvoCare represents another successful investment for Propel and ING PEAL shareholders,” said Mr Schahinger.

The acquisition will be funded through cash and escrowed shares in InvoCare and is expected to be completed by March 2011. The transaction was at a price above its recent carrying value and should result in Propel achieving a 3.3 times return on its investment.

ING PEAL is expecting to receive more than $2.5 million.

In other portfolio news, a venture capital investment of private equity manager CM Capital, Piedmont Pharmaceuticals (www.piedmontpharma.com), has signed a major, long-term deal with Bayer Animal Health for its chewable drug delivery innovations. This will enable CM Capital 4 Fund to make its first return of cash to its investors, including ING PEAL. CM Capital will continue to own 28% of Piedmont which it is holding with expectations of significant upside potential.

More details on ING Private Equity Access Limited and its investments can be found at www.ingpeal.com.au.

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