Portfolio
Kinder
Kinder Australia is an engineering-led provider of mission-critical conveyor-belt consumables that underpin uptime, safety and environmental compliance across Australia’s mining, quarrying, grain-handling and construction sectors. Its proprietary skirting, sealing and wear-management systems extend belt life, reduce dust and spillage, and are specified into bespoke transfer-point solutions that create naturally recurring demand for replacement components.
Attalis Capital partnered with management and the Victorian Business Growth Fund to acquire Kinder as a platform for long-term, cash-generative growth. The business typically engages in a one-off install and repeat consumables with clients often increasing their year-on-year spend as efficiencies are realised. Combined with deep multi-decade customer relationships and defensible intellectual property, supported by robust free-cash-flow conversion and clear levers to accelerate expansion into product adjacencies Kinder is well positioned to grow their client base and via bolt-on acquisitions.
Attalis Investment Principle & Alignment Rationale
Simple, understandable model
Consumables-led economics anchored by repeat maintenance cycles and demonstrable ROI’s
Formidable barriers to entry
Proprietary designs and long-tenure customer relationships create high switching costs
Strong, predictable cash flow
High gross margins, low capital intensity and minimal working-capital volatility
Clear catalysts for value creation
ERP-enabled pricing analytics, product bundling, regional expansion and bolt-on M&A
Exposure to structural tailwinds
Rising bulk-materials throughput and stricter ESG/OH&S standards increase demand for dust and spillage control
Attractive entry valuation
Acquired at an attractive unlevered FCF yield providing upside from multiple re-rating and cash-flow growth
Exceptional management & governance
Founder retains meaningful equity alongside an experienced board and incoming CFO
Limited extrinsic risk
Revenue tied to production volumes across a diversified commodity mix, not to commodity prices
Conservative balance sheet
Transaction completed debt-free; credit facilities reserved for growth acquisitions
LBNCo (exited)
LBNCo Pty Ltd specializes in providing high-speed broadband and connectivity solutions to residential and commercial properties. LBNCo has established itself as a leading provider of fiber-to-the-premises (FTTP) serving customers across Australia.
Attalis Capital acquired LBNCo (private Fibre to the Premise infrastructure business) via a private equity consortium (investors comprised ROC Partners, First State Super, family offices, high net worth investors and LBNCo's management). The investment was successfully exited in August 2019.