Australian conglomerate Soul Patts has entered the competitive bidding process for Programmed, a facilities management company valued at around A$1 billion and currently owned by Japan’s PERSOL. The emergence of Soul Patts as a potential buyer has attracted attention given the group's diversified holdings, which include real estate, data centres, and private companies such as Brickworks.
Soul Patts’ precise motives for joining the auction remain unclear, with speculation linking the bid to a partnership with private equity firm Colinton Capital, led by Simon Moore, a former executive of The Carlyle Group. Colinton Capital may be acting as a consortium partner in the bid. Investors are expected to gain more clarity regarding the company’s intentions when Soul Patts reports its full-year financial results on September 24.
Programmed, which operates across sectors including mining, defence, government, infrastructure, and aviation, is being sold through advisory firm Lazard. The company’s revenue streams are split roughly between labour hire—which delivers earnings before interest and tax (EBIT) margins near 15 percent—and property services and maintenance, which contributes a lower earnings before interest, tax, depreciation and amortisation (EBITDA) margin estimated at about 4 percent.
Several private equity firms are considering bids for Programmed, including EQT, Pacific Equity Partners (PEP), and The Carlyle Group. GenusPlus, an ASX-listed firm, had previously shown interest but appears to have stepped back from pursuing the acquisition. Meanwhile, Service Stream, a services company with limited net debt and anticipated synergies of around A$20 million, is rumored to have submitted the highest offer in the initial round. Service Stream is reportedly focused on acquiring the maintenance segment rather than the labour hire operations. UBS and Gresham are advising Service Stream, while Macquarie Capital is providing advisory services to PEP.
The A$1 billion valuation reflects a price close to what PERSOL paid when it acquired Programmed in 2017. Market analysts note that PERSOL has been signaling an exit strategy for Programmed for some time and initiated a business review last year. The facilities services sector is generally experiencing favorable conditions, benefiting from ongoing demand in power, water, defence, and major infrastructure projects.
Soul Patts’ entrance into the bidding coincides with its decision to offer the Redland Fruit business for sale via PwC. The agricultural portfolio comprises 10 properties covering approximately 3,000 hectares and producing a variety of fruits including apples, citrus, table grapes, and kiwifruit. Potential buyers for Redland Fruit include Canada’s La Caisse de dépôt et placement du Québec (La Caisse) and investment group Macquarie.