PwC's Corporate Finance team leading two sale mandates

26 May 2021 Consultancy.com.au 3 min. read

PwC’s Corporate Finance team have been enlisted to run two sale mandates in recent weeks– for radiology group Imaging Associates and chicken producer Hazeldenes.

The engagements add to a busy portfolio for PwC’s dealmakers – recently recognised as the globe’s busiest M&A consultancy by a leading researchhouse. In Australia, the Big Four accounting and advisory firm has among others worked on the sale of Natural Pet Food Group and Clarke Creek Wind Farm since late last year, and is currently supporting two-staged auctions for Ace Dairy and Penten.

Two new projects on the list: Victoria-based medical imaging company Imaging Associates has enlisted PwC to solicit potential private equity buyers; and Hazeldenes – a family-owned poultry manufacturing company also based in Victoria – is in PwC-advised talks with buyers as well.

PwC's Corporate Finance team leading two sale mandates

Imaging Associates

Based in Box Hill, Victoria, Imaging Associates is a team of more than 15 highly specialised radiologists offering medical and diagnostic imaging services across CT scans, MRIs, biopsies, X-rays and several others. The 2008-founded company operates with five private clinics – in Box Hill, Wagga, Mitcham, Tecoma and Baw Baw. 

Australian Financial Review (AFR) reports that PwC is hoping to secure over $120 million for a full sale of Imaging Associates – placing the firm’s earnings (EBITDA) at $12 million. The sizeable asking margin draws on current trends unfolding through the radiology sector, where two recent acquisitions – ASX-listed infrastructure investment firm Infratil’s bolt-on of QScan and Pacific Radiology in quick succession – drew 13 and 14 times EBITDA respectively. 

That said, a number of major private equity players in the medical imaging space have reportedly passed over the Imaging Associates proposition – opening the sale to a vibrant market of new and innovative entrants. PwC has already collected indicative bids, and many new names feature in the list of interested parties. 

Hazeldenes

Hazeldenes was founded in 1938 and now places among the five biggest chicken producers across Australia – according to PwC, which AFR reports has presented a six-pronged pitch in a flyer sent out to potential buyers. 

Size and profitability take centre stage in the pitch: PwC puts Hazeldenes’ sales at over 75 million kilos of chicken in the 2020 financial year – drawing revenues in excess of $300 million. The family-owned company holds over $200 million in property assets – spanning nearly 50 breeder and broiler farms, as well as a hatchery, a processing plant and a factory. 

Hazeldenes supplies to the largest supermarket chains in Australia as a wholesaler as well as a retailer through its private brand. Add to this the company’s strategic location near supply chain hubs and a booming industrial context – poultry is the most consumed meat in Australia with the lowest competition in production – and the pitch is complete.

A two-staged auction is expected. “The shareholders will consider offers for the operating business, land portfolio or a combined sale,” said the sale flyer.