MIRA INFORM REPORT

 

 

Report Date :

12.01.2013

 

IDENTIFICATION DETAILS

 

Name :

SYLVANIA LIGHTING AUSTRALASIA PTY LTD

 

 

Registered Office :

C/o GERARD LIGHTING GROUP PTY LIMITED, 142–144 Fullarton Road, Rose Park, South Australia  5067

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2012 (Group Consolidated)

 

 

Date of Incorporation :

10.05.1966

 

 

Com. Reg. No.:

000534243

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Design, manufacturing and distribution of lighting products.

 

 

No. of Employees :

1,045 employees (Gerard Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 2,200,000

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Australia - ECONOMIC OVERVIEW

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.

Source : CIA

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                : SYLVANIA LIGHTING AUSTRALASIA PTY LTD

Business address          : Sylvania Way

Town                             : Lisarow

Province                        : New South Wales

Zip/postal code : 2250

Country                         : Australia

Tel                                : +61 2 43280600

Fax                               : +61 2 43282605

Email                            : sylvania@sla.net.au

Website                        : www.sla.net.au

 

Registered address        : C/o GERARD LIGHTING GROUP PTY LIMITED

  142–144 Fullarton Road

Town                             : Rose Park

Province                        : South Australia

Zip/postal code              : 5067

Country :                       Australia

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered          : 10/05/1966

Legal form                                : Australian Proprietary Company

Chief executive                          : Simon Charles Gerard

Issued & paid up capital             : AUD 21,060,289

Sales turnover                            : AUD 389,295,000 (Group-consolidated 12 months, 30/06/2012)

Net income                                : AUD 17,622,000 (Group-consolidated 12 months, 30/06/2012)

Total fixed assets                       : AUD 306,362,000 (Group-consolidated 12 months, 30/06/2012)

Line of business                         : Design, manufacturing and distribution of lighting products.

Staff employed                           : 1,045 employees (Gerard Group)

 

Company Analysis

 

Country risk                               : Country risk is minimal

Operation trend              : Operational trend is steady

Management experience             : Management is adequately experienced

Financial performance                : Group financial performance is good

Organization structure                : Organizational structure is stable

Detrimental                    : No detrimental found

Payment history                        : No payment delays noted

Credit amount suggestion           : USD 2,200,000

Credit amount asked                  : USD 300,000

Comments                                : Larger credit can still be considered.

 

STATUTORY DETAILS

 

Registry Data

 

Registration date                                                : 10/05/1966

Legal form                                                         : Australian Proprietary Company

Registration no Australia Company Number          : 000534243

Registered authority                                           : Australian Securities and Investments Commission

Fiscal/ Tax no : Australia Business Number         : 81000534243

Registry status                                                  : Live/Active

Previous name                                                   : SYLVANIA LIGHTING INTERNATIONAL PTY LIMITED (until 17-09-2002)

GTE AUSTRALIA PTY. LIMITED

GENERAL TELEPHONE & ELECTRONICS AUST PTY LTD

SYLVANIA ELECTRIC AUSTRALIA PTY LTD

GTE AUSTRALIA PTY LTD

GENERAL TELEPHONE & ELECTRONICS (A'ASIA) PTY LTD (initial)

Change of legal form                                           : None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                            : Simon Charles Gerard

Designation                   : Managing Director

Name                            : Mark West

Designation                   : General Manager

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name                            : Simon Charles Gerard

Designation                   : Director

Appointment date           : 18/01/08

Address                        : 8 Madurta Avenue

  Aldgate, SA 5154

  Australia

Biography                      : Born on 22-06-1973 in Adelaide, South Australia, Australia.

Prior to his appointment as Gerard Lighting’s Managing Director in early 2006, Simon Gerard held the position of Executive General Manager of Clipsal Australia, Australia’s leading manufacturer of electrical accessories and automation products. Simon holds a

Bachelor of Management and an Associate Diploma in Business from the University of South Australia. Simon is a member of the board of directors of Lighting Council Australia.

Name                           : Benjamin Malcolm Mills

Designation                   : Director

Appointment date           : 18/01/08

Address                        : 6 Dudley Road

Rose Bay, NSW 2029

Australia

Biography                      : Born on 15-08-1968 in Adelaide, South Australia, Australia.

 

Name                            : Gary Savage

Designation                   : Director

Appointment date           : 21/07/09

Address                        : Whitehead Road

  Mylor, SA 5153

  Australia

Biography                      : Born on 29-09-1960 in Cape Town, South Africa.

  Gary Savage joined Gerard Lighting at the end of July 2009. Gary previously spent 30 years with KPMG, including 13 years as a partner. Gary has significant experience in the provision of advice in the areas of assurance, risk management, acquisition and vendor due diligence, investigating accountant reports, corporate governance and general business management.

Gary holds a Bachelor of Commerce (Honours) Degree from the University of Pretoria and is a Fellow of the Institute of Chartered Accountants in Australia.

 

Name                            : Graham Craig Ellis

Designation                   : Director

Appointment date           : 18/01/08

Address                        : 21 Edward Place

Barden Ridge, NSW 2234

Australia

Biography                      : Born on 28-01-1962 in Blackwood, South Australia, Australia.

Graham Ellis has 23 years experience in the electrical accessories industry, the last 17 years in the lighting industry with the Gerard Lighting Group. Graham’s experience includes major development of the operational systems and accounting functions with broad knowledge of the AS400 system Movex and previously BPCS, and involvement in business developments of new markets and strategies of the corporation.

Graham holds a Bachelor of Arts (Accountancy) Degree and is a member of CPA Australia and the Australian Institute of Company Directors.

 

Name                            : Grant Lee Price

Designation                   : Company Secretary

Appointment date           : 11/02/08

Address                        : 10 Olive Grove

Hazelwood Park, SA 5066

Australia

Biography                      : Born on 03-11-1950 in Adelaide, South Australia, Australia.

Staff employed               : 1,045 employees (Gerard Group)

 

 

Key Advisors

 

Auditors                        : ERNST & YOUNG

  321 Kent Street

Sydney, NSW 2000

Australia

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital          : AUD 21,060,289

No of shares                  : 21,060,289 Ordinary Shares

Share par value : AUD 1

Issued capital                : AUD 21,060,289

Paid up capital               : AUD 21,060,289

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed                     : Full List

 

Composition

 

Shareholder name          : LIGHTING CORPORATION PTY LTD

Address                        : 142–144 Fullarton Road

Rose Park, SA 5067

Australia

No. of shares                 : 21,060,289 Ordinary Shares

% of shares                   : 100%

Comments                    : On 18 July 2012, Gerard Lighting Group Pty Limited announced to the ASX that it had entered into a Scheme Implementation Agreement with Lighting Investments Australia Pty Limited (LIA), a company owned by CHAMP Private Equity, under  which it is proposed that LIA will acquire all of the outstanding shares in Gerard Lighting for a cash consideration of $1.05 per share, by way of a scheme of arrangement.

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name                : CHAMP PRIVATE EQUITY PTY. LIMITED

Affiliation type    : Ultimate Holding Company

Address            : Level 4, Customs House

31 Alfred Street

Sydney, NSW 2000

Australia

Comments        : CHAMP Private Equity is a private equity and venture capital firm specializing in early stage, growth capital, expansion, and buyout investments in middle market companies. It invests in both listed and private companies. The firm prefers to invest in companies from the sectors of industrials, distribution, health, education, biotechnology, IT, financial services, food products, beverages, and telecommunications based in Australasia with a focus on Australia, Singapore, and New Zealand. The firm ideally invests in companies with enterprise values between AUS$100 million ($70.9 million) and AUS $1 billion ($709.02 million). It seeks to exit an investment within three to five years. CHAMP Private Equity was founded in 2000 and is based in Sydney, Australia with additional offices in Queensland, Australia, New York, New York, and Singapore, Singapore.

 

Name                : LIGHTING INVESTMENTS AUSTRALIA PTY LTD

Affiliation type    : Superior Holding Company

Address            : Level 4, Customs House

31 Alfred Street

Sydney, NSW 2000

Australia

 

Name                : GERARD LIGHTING GROUP PTY LIMITED

Affiliation type    : Intermediate Holding Company

Address            : 142–144 Fullarton Road

Rose Park, SA 5067

Australia

Comments        : Gerard Lighting Group Pty Limited engages in the manufacture, distribution, and sale of lighting and allied electrical products. It offers commercial, industrial, and architectural lighting products; luminaries and tunnel lighting products; lamps and lighting control gears; fluorescent, industrial, exterior, architectural, medical, adverse, and emergency lighting products; lights for consulting engineers and  architects; and aluminum lighting systems. The company markets its products under the Pierlite, Sylvania Lighting, Crompton Lighting, Moonlighting, Inlite, and Austube brands through electrical wholesalers, retailers, and electrical contractors in Australia, New Zealand, eastern Africa, the United Kingdom, India, the Middle East, Indonesia, Malaysia, Pakistan, Mozambique, and Italy. Gerard Lighting Group Limited was founded in 1920 and is based in Cavan, Australia. As of October 23, 2012, Gerard Lighting Group Limited was taken private.

 

Name                : LIGHTING CORPORATION PTY LTD

Affiliation type    : Parent Company

Address            : 142 Fullarton Road

Rose Park, SA 5067

Australia

 

Name                : PIERLITE AUSTRALIA PTY LTD

Affiliation type    : Sister Company

Address            : 96-112 Gow Street

Padstow, NSW 2211

Australia

 

Related companies and corporate affiliations comments : Other companies of the Gerard and Champ Private Equity Group should be considered affiliates of the Subject.

 

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank    : St George Bank

Address            : Australia

Account details : Current Account

Name of bank    : Westpac Banking Corporation

Address            : Australia

Account details : Current Account

Comments        : It is generally not the policy of local banks to provide credit status information to non related  parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages         : None reported.

 

Legal Fillings

 

Bankruptcy fillings          : None reported.

Court judgements           : None reported.

Tax liens                       : None reported.

Others                          : None reported.

 

 

FINANCIAL DATA

 

Description

 

Source of financial statement      : Public Record Sources

Financial statement date            : 30/06/12

Type of accounts                       : Full audited

Currency                                   : Australia Dollar (AUD)

Exchange rate                           : 1 USD = AUD 0.95 as of 10-01-2013

 

Summarized Financial Information

 

Consolidation type                     : Group Consolidated                  Group Consolidated

Currency                                   : Australia Dollar (AUD)              Australia Dollar (AUD)

Denomination                            : (x1) One                                  (x1) One

Date of financial year end            : 30/06/12                                  30/06/11

Length of accounts                     : 12 months                               12 months

Sale turnover / Income                : 389,295,000                            404,414,000

Operating profit                          : 35,436,000                              38,181,000

Profit before tax                         : 27,190,000                              29,612,000

Net income                                : 17,622,000                              19,519,000

Non current assets                     : 141,535,000                            123,908,000

Current assets                           : 164,827,000                            170,137,000

Inventories                                 : 75,651,000                              68,021,000

Total assets                              : 306,362,000                            294,045,000

Current liabilities                        : 84,913,000                              91,311,000

Non current liabilities                  : 92,996,000                              80,590,000

Total liabilities                            : 177,909,000                            171,901,000

Share equity                              : 128,453,000                            122,144,000

Retained earning                        : 26,143,000                              17,944,000

Comments                                : The group’s consolidated financial information above relates to the Subject’s Intermediate Holding Company Gerard Lighting Group Pty Limited and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities                            : The Subject is engaged in design, manufacturing and distribution of lighting

products.

The Subject is ultimately owned by Champ Private Equity Pty Limited.

CHAMP Private Equity is a private equity and venture capital firm specializing in early stage, growth capital, expansion, and buyout investments in middle market companies. It invests in both listed and private companies. The firm prefers to invest in companies from the sectors of industrials, distribution, health, education, biotechnology, IT, financial services, food products, beverages, and telecommunications based in Australasia with a focus on Australia, Singapore, and New Zealand. The firm ideally invests in companies with enterprise values between AUS$100 million ($70.9 million) and AUS $1 billion ($709.02 million). It seeks to exit an investment within three to five years. CHAMP Private Equity was

founded in 2000 and is based in Sydney, Australia with additional offices in Queensland, Australia, New York, New York, and Singapore, Singapore.

Product & services                     : Luminaire Lighting

Roadway & Tunnel Lighting

Lamps & Commodity Fixtures Lighting

Interior Architectural Lighting

Hazardous & Arduous Lighting

Exterior Architectural & Urban Furniture Lighting

Brand                                        : SYLVANIA

CONCORD

CSE

SITECO

GHIDINI

LUMIANCE

VICTOR

 

Purchases

 

International                               : Worldwide

 

Sales

 

Local                                        : Yes

International                               : Worldwide

Key events                                : 23 October 2012

Gerard Lighting Group Switches Into Champ’s Camp Champ Private Equity has completed the 186 million Australian dollar (US$192 million) take-private of Gerard Lighting Group, meaning the 2009 A$1.5 billion CHAMP III Fund is more than 50% invested.

 

“We’re happy with the pace and way we’re investing,” Champ Managing Director John Haddock told Deal Journal Australia.

 

He explained that Gerard Lighting — a distributor-manufacturer with operations in Australia, New Zealand, the Middle East, the U.K. and Asia — was attractive to Champ due to its market-leading position and proven management team. The Gerard family founded Clipsal Electric, which was  acquired by Paris-based Schneider Electric SU.FR -0.58% in 2003.

 

“It’s a good industry to be involved in, in an environment where people and businesses are focused on reducing their carbon footprint and lowering costs, they’re looking at cutting power consumption through the use of LED and other energy-efficient lighting,” Mr. Haddock said.

 

“We believe there will be some bolt-on acquisitions that could drive opportunities for us within the lighting space,” he added, declining to name them.

 

Mr. Haddock added that Champ remains focused on Asian growth for Gerard, and all its businesses.

 

Alongside Gerard Lighting Group in the CHAMP III Fund is formerly listed outdoor advertising company oOh!media, which is in discussions to buy Ten Network Holdings TEN.AU +1.72%’s Eye Corp, and a 33.2% stake in vessel provider to the oil and gas industry, Miclyn Express Offshore.

 

Source: Journal Australia

 

18 July 2012

 

Gerard Lighting welcomes $186m takeover

 

Gerard Lighting Group is recommending its shareholders accept a $186  million takeover offer from Lighting Group Australia Pty Ltd.

 

Gerard on Wednesday said it had entered into a scheme implementation agreement with Lighting Group for the $1.05-a-share offer.

 

The offer price represents a 40 per cent premium to the company's closing price of 75 cents last Friday, the last day the stock traded before it entered a trading halt on Monday.

 

News of the offer came as Gerard warned its full year net profit was likely to come in at the bottom end of its previous forecast of $17.5 million to $18.5 million.

 

Gerard deputy chairman Rick Allert said the company's directors believed the offer was an opportunity for shareholders to secure an attractive premium for their shares.

 

"The independent directors recommendation is supported by the other directors and the proposal has the support of the major shareholders associated with the Gerard family," he said.

 

The Gerard family holds 52 per cent of the company's stock.

 

Lighting Group Australia is owned by private equity group CHAMP.

 

Source: www.news.smh.com.au

 

Property & Assets

 

Premises                                  : The Subject operates from premises located at the verified heading address consisting of a production facilities, warehouse and administrative office.

Branches                                  : In addition, the Subject operates from branch offices located at:

77 Truganina Road

Malaga, WA 6090

Australia

Tel: +61 8 92492890

25 Donkin Street

West End, QLD 4101

Australia

Tel: +61 7 30348600

142-144 Fullarton Road

Rose Park, SA 5067

Australia

Tel: +61 8 81222440

Suite 1C, 69 Waterloo Road

North Ryde, NSW 2113

Australia

Tel: +61 2 88730000

Riverview Business Park

87 Moreland Street

Footscray, VIC 3011

Australia

Tel: +61 3 96897833

Intellectual property : ISO9001 certified

ISO14001 certified

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          : Reserve Bank of Australia

Reserve of foreign exchange & gold         : US$ 43.879 billion

Gross domestic product - GDP               : US$ 1.586 trillion

GPP (Purchasing power parity)               : 954.296 billion of International dollars

GDP per capita - current prices               : US$ 68,916

GDP - composition by sector                  : agriculture: 4%

industry: 25.6%

services: 70.4%

Inflation                                                 : 2009: 1.8%

2010: 2.8%

2011: 3.4%

Unemployment rate                               : 2009: 5.6%

2010: 5.2%

2011: 5.1%

Public debt

(General Government gross debt as

a % GDP)                                             : 2009: 16.9%

2010: 20.4%

2011: 22.9%

Government bond ratings                        : Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded shares      : US$1.258 trillion

Largest companies in the country            : Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications)

 

Trade & Competitiveness Overview

 

Total exports                                         : US$210.7 billion

Exports commodities                             : Coal, iron ore, gold, meat, wool, alumina, wheat

Total imports                                         : US$187.2 billion

Imports commodities                              : Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts, crude oil and petroleum products

Export - major partners                           : Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners                           : China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

UK 4.3%, Thailand 4.2%

FDI Inflows                                            : 2008: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

FDI Outflows                                          : 2008: US$33,604 million

2009: US$16,160 million

2010: US$26,431 million

Best countries for doing business            : 10 out of 183 countries

Global competitiveness ranking               : 20 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

 

Total population                                     : 22.23 million

Total area                                              : 7,692,024 km2

Capital                                                  : Canberra

Currency                                               : Australian dollars (AUD)

Internet users as % of total population     : 76%

 

PAYMENT HISTORY

 

Purchase Term

 

Local                                        : Prepayment, Bank transfer, D/P, Credit 30-120 days

International                               : L/C, Prepayment, D/P, Telegraphic transfer, Credit 30-120 days

 

Sales Term

 

Local                                        : Prepayment, Bank transfer, D/P, Credit 30-120 days

International                               : L/C, Prepayment, D/P, Telegraphic transfer, Credit 30-120 days

 

Trade Reference/ Payment

 

Behaviour

 

Comments                                : As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

 

Investigation Note

 

Sources                                    : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.54

UK Pound

1

Rs.88.05

Euro

1

Rs.72.29

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.