Street Talk understands Alceon has dipped into $US6.8 billion ($10 billion) agricultural equipment giant AGCO Corporation’s senior leadership ranks to recruit a chief executive officer for Boss, which was valued at $150 million when it bought a 50 per cent stake in April.

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Alceon’s executive of choice is James Haarhoff, who spent 12 years with AGCO, most recently as its managing director for Australia, New Zealand and South East Asia. Prior to AGCO, he worked for Sparex Limited, a manufacturer of agricultural spare parts.

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He will join Boss Engineering in October, and be tasked with driving the business from $28 million earnings in the 2023 financial year to Alceon’s forecast of $53 million EBITDA and $142 million gross income by the 2028 financial year. The deal – and Alceon’s lofty expectations of it – were first revealed by this column in March.

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“James’ appointment as CEO is another major milestone for BOSS Engineering and will provide high-calibre stewardship for the company going forward. He is a well-recognised and respected leader within the agricultural manufacturing industry and brings to the role a deep understanding of the complex issues surrounding the agriculture sector,” said Boss Engineering co-founder Michael Grills.

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Boss Engineering was founded in Inverell in the early 2000s and has differentiated itself from rivals by prioritising automation from its early days. Its 32,500 square metre facility has 27 robots, with the product line-up including the highest-yielding seeders and planters available to corporate and broad-acre farmers.

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Alceon PE co-heads Zac Midalia and David Wilshire paid 5.3 times-times the EBITDA forecast for the 2024 financial year, after Boss’s co-founders tapped Miles Advisory to seek a partner. The deal was structured as preference shares, with downside protection and board control for Alceon, as well as incentives for Boss’ management to beat target forecasts.

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Midalia, who formerly worked at Ruffy Geminder’s Kin Group, sits on Boss’s board. He tapped former CHAMP Private Equity dealmaker Ben Sebel as the chairman. In July, Alceon hired NZ-based Hustler Equipment’s John Lehman as Boss’s chief financial officer.

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Alceon’s had a busy year. Last month, it acquired a majority stake in defence contractor Shadbolt Group. Earlier in the year, the duo made IRR of about 35 per cent on the sale of a 65 per cent stake in Orange Hire to NYSE-listed giant United Rentals Inc earlier this year.

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Originally published at https://www.afr.com/street-talk/alceon-pe-brings-in-new-management-at-boss-engineering-20240829-p5k6c6

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