iSigma Capital's sale of its 100% stake in Gold-Pak, a fruit juice maker, to Air Water Inc. will be completed at the end of this month. The news was released in mid-August. Air Water is an industrial gas production company with USD 2 billion market cap. However, 2/3 of Air Waters sales are from non-Gas business. iSigma acquired a 92.6% stake of Gold-Pak through a tender offer in January 2011. The fund spent JPY 4.5 billion (USD 57million), of which JPY 1.5 billion was borrowed from Aozora Bank. We estimate the entry EBITDA multiple was around 3.5x (after paying a 56% premium).
Little financials are available regarding the exit of this time. According to Air Water's press release, Gold-Pak's sales, which had been falling in the preceding years, were stable at around USD 500 million in 2011 and 2012. Today Air water shares are trading at PER 10. As the entry price was low, even a sale at PER 7 (a random assumption) would have brought 1.5-2.0 x return to the iSigma fund.
Little financials are available regarding the exit of this time. According to Air Water's press release, Gold-Pak's sales, which had been falling in the preceding years, were stable at around USD 500 million in 2011 and 2012. Today Air water shares are trading at PER 10. As the entry price was low, even a sale at PER 7 (a random assumption) would have brought 1.5-2.0 x return to the iSigma fund.
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