Australian growth fund Anacacia Capital has acquired a majority stake in Sydney-based fire sprinkler and alarm firm Force Fire, a report from AFR said on Monday.
Force Fire designs, installs, maintains and repairs fire safety systems in the NSW area. Its clientele includes day care centres, nursing homes, shopping malls and businesses around the Sydney area.
According to the report, Force Fire executive directors and owners Paul Gatt and Paul Richetti will continue to lead the business as part of the private equity investment and retain a meaningful stake in the company. The growth fund will invest in the business along with Force Fire’s founders and management team.
The deal is an attempt to expand the market share for the company in the Australian fire and security alarm installation services market which is worth $3 billion annually and expected to grow 1.1 per cent, according to IBISWorld data released in May 2017.
The private equity investment deal, the first in Australia this year, was recently signed by the two parties, it is understood.
Anacacia Capital is targeting to launch its Fund III worth about $300 million this year. The firm’s capital commitments so far exceed $280 million and it has made about 60 small and medium investments, according to its website.