Castle Harlan – together with Champ Private Equity (its Australian affiliate) – sold United Malt Holdings for $655 million. This transaction accords Castle Harlan with “a nice return on its investment.” GrainCorp – the fourth largest malt producer in the world – was the buyer.
A total of $90.54 million in equity was invested by Castle Harlan and Champ Private Equity in the company when it made the purchase a few years earlier from Tiger Brands and Congara Foods. Castle Harlan paid up approximately 55 percent of the equity; Champ made up the difference. Together, this investment makes the total dollar return (to both firms) 4.5 times the equity that they invested. There is an internal rate of return of around 80 percent.