SYDNEY, March 13 (Reuters) - The private equity owners of United Malt Holdings, one of the world’s largest producers of malt for the brewing and distilling industries, are considering a A$500 million ($467 million) float of the business, Australian media reported on Thursday.
The Australian Financial Review, citing no sources, said Australian buyout firm CHAMP Private Equity and its U.S. affiliate Castle Harlan were believed to be assessing options for a possible exit to take advantage of malt prices that have risen on strong demand.
According to CHAMP’s Web site, UMH has revenues in excess of $400 million and has 14 plants in the United States, Canada, Australia and the United Kingdom. It is a major supplier to beer makers such as Foster’s Group FGL.AX, the newspaper said.
CHAMP and Castle Harlan bought the businesses that make up UMH in 2006 from U.S.-based ConAgra Foods Inc (CAG.N) and South African consumer goods group Tiger Brands (TBSJ.J). ($1=A$1.07) (Reporting by Ben Wilson)