Mining industry equipment and services provider Bradken has enterd in to an deal to acquire the 83-per cent stake that it does not already own in US company AmeriCast Technologies from private equity firm Castle Harlan and the AmeriCast managemnt for $114 million to strengthen its presence in the the resources sector.

Bradken will fund the acquidition almost entirely from a $110-million share placement underwritten and sole managed by Goldman Sachs JBWere. The total transaction costs are estimated at $5 million.
The acquisition will significantly expand Bradken's capabilities in large steel castings and provide an American base from which to expand some of Bradken's mining consumable products.

Based on the value of this transaction, Castle Harlan and the AmeriCast management will make collective gain of more than three times on their original invested capital, which represents an IRR of more than 90 per cent, Howard Morgan, a senior managing director at Castle Harlan who leads the firm's AmeriCast team, said.

Morgan said, "AmeriCast has been an excellent investment for Castle Harlan and its limited partners, and we are pleased that we have been able to add significant value to the company during our 21-month period of ownership. Annual EBITDA has grown more than 100 per cent through both organic growth and strategic acquisitions. We're confident this growth will continue."

The transaction has received Hart-Scott-Rodino Act governmental approval and is expected to close in the next week. The Company's 11 per cent Notes Due 2014 will remain outstanding after completion of the transaction, in accordance with the terms of the indenture governing the notes.

Bradken had purchased a 19 per cent minority equity interest in AmeriCast when Castle Harlan acquired a controlling stake in the company in November 2006. Until it went public in August 2004, Bradken had been a portfolio company of Castle Harlan's Australian affiliate CHAMP Private Equity in Sydney. Bradken is based in Newcastle, New South Wales, about 90 miles north of Sydney. Bradken currently has revenues of approximately $800 million.

"We know Bradken very well and have had long relationships with its CEO Brian Hodges, chairman Nick Greiner, and many of the senior Bradken management team," Morgan said.

Anand Philip, a senior associate who led Castle Harlan's negotiating team on this transaction, adds, "We are confident that, under Bradken's leadership, the company will continue to prosper. Post closing, we intend to support Bradken in its effort to grow AmeriCast and its business in North America." He added that during Castle Harlan's ownership, "we more than doubled growth and productivity-related capital expenditures that should continue to benefit AmeriCast in coming years."

After acquiring AmeriCast in November 2006, Castle Harlan assisted the company in purchasing Atlas Castings and Technology in April 2007 and A.G. Anderson in April of this year. Atlas makes large specialty steel castings for the energy and defense industries; A.G. Anderson produces castings in stainless steel and complex ferrous alloys, primarily for the energy industry. In January 2008, Castle Harlan assisted the company in divesting its Prospect division, which had been identified as non-core to the AmeriCast business.

Taking account of those acquisitions and the divestiture, AmeriCast is expected to have total revenues and EBITDA this year of more than $340 million and $47 million, respectively. When Castle Harlan purchased the company in November 2006, its revenues were below $200 million.

Demonstrating the successful lasting relationship among the parties and their community involvement, Castle Harlan and AmeriCast have agreed to contribute $600,000 to endow the Castle Harlan-AmeriCast Scholarship Fund, which will be dedicated to providing need and merit-based educational scholarships to the children of AmeriCast's approximately 2,000 employees.

Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America, Europe and, together with CHAMP Private Equity, in Australasia. Since inception, Castle Harlan has invested in 49 companies representing more than $9 billion in enterprise value. Please refer to its website at www.castleharlan.com.

Castle Harlan's current portfolio companies, which employ more than 42,000 people, include Baker & Taylor, the leading global distributor of books and entertainment products to libraries and retailers; United Malt Holdings, one of the world's largest producers of malt for use in the brewing and distilling industries; and Anchor Drilling Fluids USA, Inc., the nation's largest independent provider of drilling fluids and fluid-handling services for onshore oil and gas drilling.

CHAMP Private Equity was formed in 2000 as Castle Harlan Australian Mezzanine Partners by the founders of CHAMP Private Equity's predecessor and Castle Harlan. CHAMP Private Equity and its predecessor have made more than 60 investments since 1987 in companies operating in Australia and New Zealand. CHAMP Private Equity currently maintains offices in Sydney, Australia and Singapore. Please refer to its website at www.champmbo.com.

CHAMP Funds have acquired and successfully exited from investments in a variety of sectors, including Austar United Communications, the satellite TV broadcaster for most of Australia, Australian Pacific Paper Products, Australia's second largest manufacturer and distributor of disposable diapers and adult incontinence products, and Penrice Limited, the only producer of soda ash in Australia.

Current CHAMP portfolio companies include: International Energy Services, Manassen Foods, Healthcare Australia, Study Group International, United Malt Holdings and Blue Star Print Group Limited.

The combined worldwide funds under the management of Castle Harlan and CHAMP Private Equity exceed $4.5 billion.