United Malt Makes Pretty Profit for Castle Harlan

Castle Harlan Logo
Castle Harlan Logo

With their sale of United Malt Holdings for $655 million, Castle Harlan was able to realize a respectable profit, approximately 4 and a half times the money invested.

Castle Harlan and Champ Private Equity, an Australian affiliate company with Castle Harlan, sold the portfolio company, the world’s fourth largest producer of malt, to GrainCorp of Australia.

In 2006 the partners invested in total $90.54 million in equity in United Malt, which was purchased at the time from Conagra Foods and Tiger Brands. Castle Harlan supplied 55 percent of the investment, while Champ supplied the remaining percentage.

The internal rate of return was about 80 percent, but it would be incorrect to believe that the deal was risk free. Earlier tries to see United Malt ended unsuccessfully, according to BusinessWeek.

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James Fishman has been involved in the world of online magazines for more than 15 years. He helped launch Sunstone Online and continues to improve the magazine as site editor and administrator. His writing focuses primarily business and technology. To be in touch with James, feel free to contact him at james[at]sunstoneonline.com.

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