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South Australia-based Levett Engineering has reached an agreement to sell the business to ASDAM, an Australian sovereign defence and advanced manufacturing company owned by funds managed by CPE Capital (formerly CHAMP Private Equity).
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Levett provides machining, assembly and inspection of a range of complex components for clients in the aerospace and defence industry. The company has built long-term relationships with a number of defence prime contractors, including Lockheed Martin, L3Harris, Pratt & Whitney, BAE Systems, Northrop Grumman and Boeing.
Levett will join Marand Precision Engineering, a supplier of precision engineered solutions to the defence, aerospace, rail and mining sectors, which was acquired by CPE Capital in June 2019, in the ASDAM Group.
Paul Levett, founder and owner of Levett, said, "I’m incredibly proud of what the team at Levett has achieved since its founding in 1989. The acquisition by CPE Capital’s Australian defence portfolio company will provide the capacity and capability to better service our existing clients in the Joint Strike Fighter Program, and create the platform to service new clients in different domains and programs."
CPE Capital is building an integrated precision engineered products, solutions and sustainment company to support the Australian defence and aerospace industry and to better service its global defence and aerospace customers.
Steve Sargent, chairman of ASDAM, said, "We were impressed by Levett’s breadth and depth of client relationships, and believe their expertise in precision components will be highly complementary to Marand and ASDAM. We look forward to Levett joining the ASDAM group and growing our presence in South Australia."
Levett will continue to operate in Adelaide, but will be able to utilise the combined capabilities of Marand in the ASDAM group to provide a wide range of solutions for defence customers.
This announcement comes after the similar acquisition of Victorian-based Marand Precision Engineering in March 2019, on the back of the lucrative investment opportunity as a result of the government's $200 billion investment in Australia's defence capabilities outlined in the 2016 Defence White Paper, Integrated Investment Plan and subsequent industry development plans, which establish Australian sovereign industrial content and capability as key drivers for supporting Australian defence capability.
CPE Capital and its affiliated fund entities have deployed approximately $3.8 billion of investor commitments since 1987. CPE Capital has one of the largest dedicated buyout teams in Australia and is the most experienced Australian headquartered private capital manager, having made 75 platform investments during its 32-year history.
CPE Capital undertakes control buyout transactions, enters into founder partnerships and provides growth investments for mid-market companies in Australasia, including those which possess significant offshore operations or ambitions.
The agreement is subject to regulatory and other customary approvals.
