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Pohutukawa Funds

Pohutukawa I Investments


Stratex Group

Investment Date: 2007 
Development Stage: MBO 
Ownership interest: Pohutukawa 32.8% | Direct Capital 83.2% 
Sector: Packaging-laminates 
Where: New Zealand 
About: Stratex is a manufacturer of specialty base film and paper packaging materials used in the packaging industry. The company laminates varying combinations of paper, foil and film bases with polymer resins and adhesives to produce complex base materials used across a wide range of food packaging and industrial applications.

Fishpond

Investment Date: 2009 
Development Stage: Expansion 
Ownership interest: Pohutukawa 4.5% | Direct Capital 12.0% 
Sector: Online retailer 
Where: New Zealand 
About: Fishpond is Australasia’s largest local online retailer, offering a selection of more than 13 million products, including books, toys, games, music, movies, and health and beauty products amongst others.


Realised investments

Pohutukawa I has realised the following investments to date:

Rodd And Gunn

Realised -Investments

 

 

NZPNZKS

Investment Chronology

Pohutukawa sells shareholding in New Zealand Pharmaceuticals 1 April 2016

Direct Capital, through its Direct Capital III and Pohutukawa I funds, today announced that it has completed the sale of its shareholding in New Zealand Pharmaceuticals (NZP).


Pohutukawa divests Rodd & Gunn March 2015

Pohutukawa has realised its stake in Rodd & Gunn settling in March 2015.


Pohutukawa sells shareholding in Shears & Mac August 2013

During August Pohutukawa sold its stake in Shears & Mac to the executive shareholders of Shears & Mac.


Sale of GoBus Holdings Limited and Hamilton City Bus Depot Limited 4 May 2012

Direct Capital, through its Direct Capital III and Pohutukawa funds, today announced that it had completed the sale of its shareholding in GoBus Holdings Limited, New Zealand’s third largest public transport operator, as part of a recapitalization plan to continue the company’s impressive growth.

Please see the GoBus press release 4 May 2012.


Sale of Triton Hearing Clinics Limited  1 December 2010

"Direct Capital completed the sale of Triton Hearing Clinics Limited on the 1st December. We believe the sale achieved the best outcome for the shareholders, given the many changes that have occurred in the audiology industry over the last four years.  The proceeds from Triton are being applied to the follow on investment into GoBus to fund the Christchurch Bus Services acquisition. "


Go Bus completes purchase of Christchurch Bus Services 30 Nov 2010

Pohutukawa investment Go Bus has today completed the purchase of Christchurch Bus Services(CBS), taking full possession of the business from 1 December 2010.

Please see the Go Bus press release 30 Nov 2010.


Pohutukawa invests in Fishpond.co.nz 12 October 2009

Pohutukawa has taken a minority shareholding in online retailer Fishpond Limited.

Fishpond is Australasia’s largest local online book retailer, offering over 2.3 million books, 213,000 CDs, 23,000 DVDs, and 2,100 video games.  Fishpond was launched in January 2004 by Daniel Robertson, who rapidly grew the New Zealand business before the launch of the highly successful Australian website in 2005.  The Company operates from a distribution centre in Auckland, has approximately 50 employees and services both the Australian and New Zealand markets from its fishpond.co.nz and fishpond.com.au websites.

Please see the Fishpond press release.

For further information on Fishpond please visit Fishpond.co.nz


Sale of Express Logistics October 2009

In October 2009 Express Logistics Group agreed to the sale of the business to Toll Group. 

Please read the press release Sale of Express Logistics Investment to Toll Group 23-10-2009.

For details on the distribution of the Express sale proceeds please read the Pohutukawa Distribution Notice 3-12-2009.


New Zealand King Salmon 8 September 2008

Direct Capital, through its DCP III and Pohutukawa funds has invested alongside management to acquire a 45 per cent shareholding in New Zealand King Salmon.

New Zealand King Salmon is the country’s biggest salmon producer supplying both the domestic and export markets.  Based in Nelson and with hatcheries, farms and processing facilities across Marlborough and Canterbury, the company is highly integrated from brood stock management right through to distribution of product through its well-recognised consumer brands, Seasmoke, Regal and Southern Ocean.

Please read the New Zealand King Salmon  press release.

For further information on New Zealand King Salmon  visit  www.kingsalmon.co.nz 


Rodd & Gunn 22 August 2008

Direct Capital, through its DCP III and Pohutukawa funds, has acquired a 30% interest in one of Australasia’s leading menswear retail chains, Rodd & Gunn Limited. 

Rodd & Gunn has a retail chain of 55 stores and concessions in malls and on high streets including 34 stores across Australia and 21 stores throughout New Zealand.  The retailer has a long-established brand and targets the premium male customer. Following Direct Capital’s investment, managing director Mike Beagley retains a 70% shareholding.

Please read the Rodd & Gunn press release.

For further information on Rodd & Gunn visit  www.roddandgunn.com/


Sale of Innovair Business  27 June 2008

Innovair Group the owner of the robocan pest control product has agreed to a sale of its assets to multinational SC Johnson. The value of the transaction is confidential but represents a very positive outcome for Direct Capital Partners and Pohutukawa shareholders, producing an annualised IRR of over 250 per cent.

Please read the Innovair press release.


Camm4 & Shears & Mak 12 June 2008

Pohutukawa along with Direct Capital partners acquires a shareholding in the merged operation of Camm4 and Shears & Mak, two of New Zealand’s leading joinery and shop-fitting providers.

 Please read the Camm4-Shears & Mak  press release.

 For further information see Shears & Mac4 website. 


Toll Holdings Limited acquires Gluck Pty 10 June 2008

On 30 May International Forwarding Limited, in which Direct Capital holds a 57% stake, sold its interests in Gluck Pty Limited to Toll Holdings Limited. 

Please read the Gluck press release.


GoBus Limited 20 December  2007

Pohutukawa acquires a shareholding in GoBus Limited, a leading provider of public transport services in the Waikato region.
Please read the GoBus press release.

For further information on GoBus visit  www.gobus.co.nz  


Max Fashions Sold to Ezibuy  12 December 2007

The Board of Pohutukawa announces the sale of its investment in Max Fashions.  Max has been acquired by Ezibuy Limited, Australasia’s largest apparel and home décor multi-channel retailer. This is a very successful outcome for us with Pohutukawa’s investment in Max of $3.618m producing $17.847m in gross dividends and sale proceeds.

To read the full press release see Max news update 


Professional Hearing Services  - Triton Hearing Clinics 27 September 2007

Professional Hearing Services announced the acquisition of Canterbury Hearing, the opening of a new clinic in Hamilton, and the re-branding of the business as Triton Hearing Clinics.

For more details see Triton update.

To find out more about Triton please visit their website:  www.tritonhearing.co.nz


Innovair Group Limited  17 September 2007

Pohutukawa invests in Innovair Group Limited.  Direct Capital has announced its seventh investment by Direct Capital Partners’ funds, taking a stake in Innovair Group Limited, who manufacture and market a range of world-class advanced automatic air dispensing systems. Direct Capital has initially acquired a 28% shareholding in Innovair alongside the original shareholders. Innovair is based on Robocan, a pest control product.

For more details see Investment in Innovair


Stratex Group Limited (Paper Coaters)  2 May 2007

Pohutukawa invests in Paper Coaters. Direct Capital today announced that it has partnered with senior management in the succession management buyout of Paper Coaters Limited (“Paper Coaters”).  Paper Coaters is one of Australasia’s leading flexible packaging companies with plants in New Zealand and Australia, it designs, manufactures and supplies packaging to the paper, food and industrial markets by adding value to paper, foil and polymers.

For more details see Investment in Paper Coaters

For further information on Paper Coaters visit  www.stratexgroup.co.nz  


Victory International Logistics Pty  27 April 2007

Express Logistics Group (ELG) has announced that, through its wholly owned subsidiary Express Logistics Australia Pty Limited, it has completed the purchase of Victory International Logistics Pty Limited (Victory).

For more details see Investment in Victory

To find out more about Express Logistics please visit their website: www.xprs.co.nz


Professional Hearing Services 30 November 2006

Pohutukawa announced its fifth direct investment. Pohutukawa and other funds managed by Pohutukawa managers, Direct Capital, togetherwith businessmen John Ryder and Howard Bretherton have acquired Professional Hearing Services. Direct Capital partners have a 47% stake.

For more details see Investment in Professional Hearing Services


Gluck Pty Limited  26 October 2006

Pohutukawa announced its fourth direct investment. Pohutukawa and other funds managed by Pohutukawa managers, Direct Capital, have acquired 20% of the shares in Gluck Pty Limited, one of Australia’s larger privately owned supply chain services companies.

For more details see Investment in Gluck 

For further information on Gluck visit  www.gluck.com.au


New Zealand Pharmaceuticals 25 November 2005

Pohutukawa announced its third direct investment into a company. Pohutukawa and other funds managed by Pohutukawa managers, Direct Capital, acquired 51% of the shares in New Zealand Pharmaceuticals (NZP).  Pohutukawa has acquired a 15.8% equity stake in NZP. Other investors include Direct Capital’s institutional fund, DCPIII with 16.5%, BioPacific Ventures with 14.1%, co-investors 4.6% and the remaining 49% of NZP will continue to be owned by the management and staff of NZP and strategic investor Shin Nippon Yakugyo, a Japanese specialty chemicals business.  See Investment in New Zealand Pharmaceuticals

To find out more about New Zealand Pharmaceuticals please visit their website: www.nzpharmaceuticals.com


Express Logistics Group Limited  4 October 2005

On the October 31 2005  Pohutukawa Private Equity, Pohutukawa's manager Diirect Capital and investment company Waterman Holdings acquired a majority shareholding in Express, with the balance of the shares owned by Express founder Brendon Thomas, Managing Director Graeme Mann and other senior Express managers and staff who are investing alongside Direct Capital and Pohutukawa. Pohutukawa acquired a 21% equity stake. See the announcement - Second Direct Investment

To find out more about Express Logistics please visit their website: www.xprs.co.nz


Max Fashions Limited (Max)  21 July 2005

In July 2005 Pohutukawa made its first investment directly into a Company.  Pohutukawa and other investors sourced by Pohutukawa managers, Direct Capital, have acquired 100% of the shares in Max Fashions Limited (Max).  Pohutukawa has invested $3.6million for 31.7% of the shares in Max and is committed to investing a further $1.6million if required by the Company. 

GoBus Secures New Investment to Continue Expansion 

4 May 2012

Direct Capital, through its Direct Capital III and Pohutukawa funds, today announced that it had completed the sale of its shareholding in GoBus Holdings Limited, New Zealand’s third largest public transport operator, as part of a recapitalization plan to continue the company’s impressive growth.

Based in Hamilton, and with operations throughout the country, GoBus was established in 2003 as an amalgamation of four local family-owned bus companies.  Direct Capital and GoBus management acquired the company in 2007 and invested significant capital in expanding the company’s urban and rural operations.  Today GoBus operates urban transport services in Hamilton, Tauranga, Hawkes Bay and Christchurch, together with school transport services on behalf of the Ministry of Education, and charter services, nationwide.

Since 2007, the Company has more than doubled its fleet of vehicles and now operates one of the youngest  School and Urban bus fleets in New Zealand.  The company has also grown its employment significantly and now employs more than 950 staff. 

With further significant growth opportunities ahead likely to require additional capital the company undertook a review of its ownership.  As a result, Next Capital completed an offer to acquire the shares in the business with GoBus management and directors also increasing their investment in the company. 

While the terms of the sale remain confidential the investment has been successful for Pohutukawa investors.

Following receipt of the investment proceeds, a distribution will be made to investors in the following fortnight.

Contacts

Tony Batterton, Director, Direct Capital                                                  +64 21 645-481

Calum Haslop, Managing Director, GoBus                                          +64 21 221-1112

About Direct Capital

Direct Capital was established in 1994 to invest into privately-owned companies, alongside owners and managers to fund expansion and succession initiatives.  Its currently active funds, Direct Capital III (together with Pohutukawa I) and Direct Capital IV (together with Pohutukawa II), have invested in 18 companies which in aggregate generate more than $1.2 billion in annual revenues and employ more than 4,500 staff. 

Current and past investments include: Hiway Group, PF Olsen, Scales Corporation, Cavalier Wool Holdings, Bayley Corporation, Transaction Services, Fishpond, New Zealand King Salmon, Rodd & Gunn, GoBus, Shears & Mac, Innovair, Triton Hearing Clinics, Stratex Group, Max Fashions, New Zealand Pharmaceuticals, Express Logistics, EziBuy, Ryman Healthcare, Nobilo Wines, Airwork, EFTPOS NZ, Tasman Building Products, and PC Direct.

23 October 2009

SALE OF EXPRESS LOGISTICS INVESTMENT

The Board of Pohutukawa is pleased to report that portfolio company Express Logistics today announced that it had signed a conditional agreement to sell its business to Toll Group, the Asian region’s leading provider of integrated logistics.

This is a very successful outcome for us with Pohutukawa’s investment in Express of $2.8million likely to produce over the investment period up to $9.5million in gross dividends and capital returns.

Settlement is scheduled for 30 October 2009.

The gross proceeds of this investment, which equates to approximately 17.0 cents per Pohutukawa share, are expected to be returned to Pohutukawa shareholders in stages over the next twelve months as the winding up of the entity and all warranties are finalised.

The actual date of the first distribution of proceeds to Pohutukawa shareholders and the amount will be advised in the week ending 6 November 2009. 

This sale of Express is a very positive result for Pohutukawa and reinforces the business case and the ongoing attractiveness of Pohutukawa as a means of accessing private equity investments. 

JOHN MCDONALD

For:  Pohutukawa Private Equity Ltd Directors

8 September 2008

Direct Capital invests in New Zealand King Salmon

Direct Capital has invested alongside management to acquire a 45 per cent shareholding in New Zealand King Salmon.

New Zealand King Salmon is the country’s biggest salmon producer supplying both the domestic and export markets.  Based in Nelson and with hatcheries, farms and processing facilities across Marlborough and Canterbury, the company is highly integrated from brood stock management right through to distribution of product through its well-recognised consumer brands, Seasmoke, Regal and Southern Ocean.

Ross George, managing director of Direct Capital, highlighted the features that attracted the private equity firm, “Food production is clearly a New Zealand strength but difficult to gain exposure to for investors because ownership is so often tied up in the co-op model.  We were especially attracted to New Zealand King Salmon because of its market-leading position, strong brands and the high demand salmon is experiencing as consumers switch to healthier and more sustainably farmed proteins. 

“The company has a strong domestic base and export revenues represent 40 per cent so it’s well diversified.  We think the level of integration in the business also offers a significant barrier to entry.  And, when we looked at the typical consumer diet, salmon is a low percentage of protein content but growing strongly so it has tremendous potential.”

Owned by the family interests of the Tiong family in Malaysia, New Zealand King Salmon was formed in 1996 through the merger of Southern Ocean and Regal Salmon to provide industry scale and to develop a domestic market with a wide variety of value-add products such as fillets, smoked salmon and ‘ready to eat’ meals.  This strategy has proven to be highly successful.

The Tiong representative in New Zealand, Mr Thomas Song expressed appreciation and support in welcoming Direct Capital to the company.  “New Zealand King Salmon is one of the most favoured assets within our NZ portfolio. It has performed exceptionally over the last few years both in the New Zealand market and as an exporter facing challenging conditions”, said Mr Song. 

“We will retain our majority ownership but the time was right to widen the company shareholder base and seek a partner that would provide valuable strategic input and additional governance oversight as the company expands its activities. Direct Capital will provide extensive experience in a range of business fundamentals and understanding of growth markets, and we are pleased with their determination to partner in the future of New Zealand King Salmon.”

The partnership aspect was also important for Direct Capital as Mark Hutton, who led the transaction for Direct Capital commented. “Our investment approach is very partnership driven and we back management in all of our businesses.  We’re delighted that as part of this transaction the management team is also investing with us.  They’re a very experienced team and it’s important to us that they also have a significant shareholding in the business.”

Paul Steere, New Zealand King Salmon’s chief executive, was also pleased with the introduction of Direct Capital.  “The company has enjoyed significant growth over recent years underpinned by our value-add strategy and ensuring export pricing reflected the premium quality of our products.  This has provided a strong platform for continued growth to meet increasing demand. 

“While additional water space is a challenge, we are working through some innovative options with the regulatory authorities.  Similarly we will need additional processing capabilities as a consequence of our growth and having Direct Capital as a shareholder and at the board table provides further support for these growth initiatives.”

ends

 

Contact Information:

Ross George         Managing Director, Direct Capital                                Ph +64 9 307-2562

Paul Steere            Chief Executive, New Zealand King Salmon             Ph +64 3 546-4860

 

About Direct Capital

Direct Capital was established in 1994, by Ross George, Bill Kermode and Mark Hutton, who continue to own and manage Direct Capital. The team at Direct Capital today has 13 investment professionals.  Direct Capital has raised over $440 million in seven funds. Recent investments include Rodd & Gunn, Go Bus, Shears & Mak4, Innovair, Paper Coaters, New Zealand Pharmaceuticals, and New Zealand Express Logistics.

www.directcapital.co.nz .

About The New Zealand King Salmon Company Limited

The New Zealand King Salmon Company Limited was formed in 1996 with the privatisation and merger of New Zealand’s two largest salmon companies, Southern Ocean Seafood Limited and Regal Salmon Limited.  The Company is ultimately owned by the Tiong Group, one of the largest private companies in Malaysia with substantial global investments in forestry, property and the media.  New Zealand King Salmon is New Zealand’s biggest integrated aquaculture company and the biggest global farmer of the premium Chinook species of salmon.  Rich in Omega 3 and other nutrients, salmon is one of the fastest growing protein categories.  The company employs 415 staff and operates six sea-farm sites in Marlborough Sounds, two hatcheries in Waikoropupu Springs and Tentburn; and four processing factories in Nelson

www.kingsalmon.co.nz

22 August 2008

Direct Capital invests in Rodd & Gunn

Direct Capital, through its DCP III and Pohutukawa funds, has acquired a 30% interest in one of Australasia’s leading menswear retail chains, Rodd & Gunn Limited. 

Rodd & Gunn has a retail chain of 55 stores and concessions in malls and on high streets including 34 stores across Australia and 21 stores throughout New Zealand.  The retailer has a long-established brand and targets the premium male customer. Following Direct Capital’s investment, managing director Mike Beagley retains a 70% shareholding.

Mike Beagley is a proven retailer with a track record of creating value in retail businesses and he has successfully grown Rodd & Gunn since becoming managing director in 2000.  Until 2006, Mike was also managing director of footwear business, Hannahs. Mike’s involvement with these two businesses followed a lengthy period with what is now known as the Colorado Group. Mike is well known to Direct Capital through its previous investment in Max Fashions, where Mike was a director.

Tony Batterton led the investment for Direct Capital and commented that, “the investment by Direct Capital is very much about backing Mike Beagley’s retail experience and supporting the continuation of Rodd & Gunn’s store roll-out plan.  We expect to significantly increase the number of retail outlets in Australasia.  Notwithstanding the generally weaker economy, the business benefits from being diversified across New Zealand and Australia and our investment is about growing the business for the long term.  In markets such as this, good brands and retailers really stand out”.    

For Mike Beagley the investment continues a relationship with Direct Capital established through Max Fashions, “I enjoyed the partnership approach Direct Capital took and saw the value private equity added to the business.  Bringing Direct Capital into Rodd & Gunn will be really helpful given the growth we’re experiencing in Australia”.

The company has also added very significant strength to its board with the appointment of Australian based Howard McDonald, as independent chairman. Howard McDonald has over 20 years in senior positions in the Australian apparel market and is a director of department store Myer and prior to that was a substantial shareholder and managing director of Just Group.  The board will also comprise UK based Roger Meadows, who has 30 years in fast moving consumer goods businesses and retail general management with international companies including Wella, Revlon, Faberge and the Body Shop. 

27-6-08

Sale of Innovair Business

Innovair Group the owner of the robocan pest control product has agreed to a sale of its assets to multinational SC Johnson. SC Johnson is well placed to continue to grow this business.  Innovair has achieved a leading market position in New Zealand’s pesticide market and a strong and growing position in Australia.

The value of the transaction is confidential but represents a very positive outcome for Direct Capital Partners and Pohutukawa shareholders, producing an annualised IRR of over 250 per cent. The sale involves 15 per cent of the proceeds being held in escrow for two years but is expected to produce a return on capital invested of over 4X.

Mark Hutton, Direct Capital Management, +64 9 369 9223

12 JUNE 2008

Merger creates ‘the best of both worlds’ for Camm4 and Shears & Mak customers

Two of New Zealand’s leading joinery and shop-fitting providers – Camm 4 and Shears & Mak – have merged their businesses to create the country’s largest, full-service shop-fitting one-stop-shop.

“Current and future customers will benefit from the combination of Camm4’s manufacturing and operational technology with Shears & Mak’s 22 years of experience in shopfitting, building works, and installation. Increased capacity will form a strengthened platform to take advantage of growing Australasian opportunities,” says Chris Stafford-Bush, Managing Director of Camm4.

“What became compelling for all parties was the realisation that the combination of Camm 4 and Shears & Mak would play to the strengths of both companies. So it will be ‘business as usual’ but it will also be a much better offering.”

Mr Stafford-Bush will lead the new company along with Patrick Moyne and Adam Begg, the Operational Directors of the current Camm4 and Shears & Mak facilities in Albany and Panmure. Julie Stafford-Bush of Camm4 will lead the merged company’s new business development, working closely with Charlie Shears and Anthony L’Estrange of Shears & Mak.

“To facilitate future growth, Direct Capital recently acquired a minority shareholding in the merged company together with Camm4 and Shears & Mak shareholders,” says Mr Stafford-Bush, “and Gavin Lonergan and Mark Hutton from Direct Capital have joined Camm4’s Board.”

The new company continues to market under the two existing brands, Camm and Shears & Mak.

Prior to the merger, Camm 4 sub-contracted shop-fit installation work because of a lack of capacity while Shears & Mak sometimes sub-contracted manufacturing work for the same reason. Now, with Camm 4’s strength in computerised joinery manufacturing and its fully integrated production processes, plus Shears & Mak’s strengths in brand leadership and shop-fit installation, the merged company will be poised to become a true market leader.

“The new company offers a hugely strengthened value proposition for all our clients and will enable us to expand our retail customer base across New Zealand and Australia,” says Mr Stafford-Bush. “We’re very confident that we’ll quickly improve efficiencies for our existing and new customers through economies of scale and providing a full, in-house, turn-key service.

“The merger will put the company in a strong position to pursue substantial trans-Tasman clients and NZ national chains because those sorts of companies tend to form long-term relationships with a single, trusted partner for their design and fit-out needs. Long-term partnerships enable them to maintain consistent pricing and give all parties the chance to learn from each job and make improvements on the next one.”

A transition period of 12 months is anticipated to implement common IT and operational infrastructures, amalgamate purchasing, and combine human resource and other administrative roles to reduce common costs. During this time, both operations will carry on with business as usual under existing key leadership to ensure a smooth transition for staff and customers.

Background: Camm 4

Employing 40 staff – including an architect and four in-house designers – at its 40,000-square-foot, automated, purpose-built premises in Albany, Camm 4 combines the latest computer-controlled fabrication machinery with integrated manufacturing and financial software.

The company was acquired five years ago by Stafford-Bush family and has expanded since then to service a wide range of national and international retailers including Bendon, Cue, Portmans, Veronika Maine, Farmers, Whitcoulls, Hallensteins, Glassons, Borders, and Smith & Caughey.

Currently more than 25% of Camm 4’s business is derived from Australia where the company handles shop-fitting assignments for brands including Bendon, Rembrandt, Sunglasses Hut, and Cue.

Background: Shears & Mak

Established 22 years ago by Charlie Shears and Jon Mak, Shears & Mak employs 60 staff including quantity surveyors, draughtsmen, spray painters, cabinet makers, and carpenters at its Panmure premises, and is the most respected brand in the New Zealand shop-fitting sector.

Predominantly a manufacturer, Shears & Mak derives its income from a range of national and international retail, hospitality, and commercial customers, including Gucci, Coffee Club, Crabtree & Evelyn, DFS, Kimberleys, Louis Vuitton, Max Fashions, Mississippi, Mont Blanc, OPSM, Overland Shoes, Pascoes, Stewart Dawsons, Sunglasses Hut, Watches of Switzerland, Gloria Jeans Coffee, and Air New Zealand.

10 June 2008

Toll Holdings Limited acquires Gluck Pty

On 30 May International Forwarding Limited, in which Direct Capital holds a 57% stake, sold its interests in Gluck Pty Limited to Toll Holdings Limited.  Under the terms of the sale agreement the price cannot be disclosed, however the return to Direct Capital significantly exceeds our target annualised return of 20%.

The shareholders of Gluck, including IFL, have retained Gluck’s New Zealand business on a pro-rata basis. IFL has also retained its holding in the Australian warehouse and distribution business.

For further information contact:

Mark Hutton
Direct Capital Limited
+64 9 307 2562

20 December 2007

Direct Capital has acquired a majority stake in GoBus. As a result Pohutukawa Private Equity has purchased an equity stake of 31.8% in Go-Bus for $4.6m.

The following is the press release.

Direct Capital has acquired a majority shareholding in GoBus Limited (‘GoBus’), a leading provider of public transport services in the Waikato region. Direct Capital’s investment has been completed from its DCPIII and Pohutukawa private equity funds.

Direct Capitals investment facilitates the replacement of a founding financial investor. Other founding shareholders and the Gobus management team will retain a significant investment in GoBus and continue to manage the company.

GoBus is a leading provider of public transport services in the Waikato region, providing urban, school and charter/tour bus services. Employing 460 people, the Company operates a fleet of 410 vehicles, 4 workshop facilities and 8 depots around the Waikato region.

The public transport sector has several positive fundamental drivers influencing growth including demographic trends, socio-behavioural trends, and increasing government support and investment. Significant further opportunities to grow the business have been identified.

Marcus Gerbich, GoBus Managing Director, commented that “Direct Capital provide us with an experienced local financial partner and sound platform from which to continue to grow the business.”

Ross George, Managing Director of Direct Capital said that “Go Bus is a strong regional business which leads its market and has a growing footprint. It is well placed to take advantage of the positive market fundamentals and increasing requirement for reliable and cost effective public transport services. We look forward to working with the Go Bus management and employees in the pursuit of the companies various growth initiatives and to continue the company’s success.”

For further information

GoBus – Craig Worth, Commercial Director and Press Spokesman, 07 846 1975

Direct Capital - Tony Batterton, Investment Director, 09 307 2562

Triton Hearing Clinics

(formerly Professional Hearing Services)

www.tritonhearing.co.nz

27 September 2007

Direct Capital portfolio company Professional Hearing Services announces the acquisition of Canterbury Hearing, the opening of a new clinic in Hamilton, and the re-branding of the business as Triton Hearing Clinics.

The acquisition of Canterbury Hearing is a significant event for the company. Canterbury Hearing is a leading hearing aid retail business in the Canterbury region, providing hearing tests and hearing aid fitting services to the public with its primary clinic in Christchurch and visiting clinics in Darfield, Amberley and Ashburton.

Canterbury Hearing’s founding audiologist Carolyn Gordon will remain as the senior audiologist and a shareholder in the company following the acquisition. The acquisition represents Triton’s entry into the South Island and further clinics are expected to be opened in due course.

Separately, the company is shortly opening its new clinic at the Rototuna retail complex in the northern part of Hamilton. The new clinic is being opened in response to strong growth at the existing Hamilton clinic in Angelsea Street which will continue to operate without change. The additional clinic will further strengthen Triton’s market leading presence in the Waikato region.

The company is also pleased to announce at this time its re-branding as Triton Hearing Clinics. All existing and future clinics will adopt the new name and livery.

Following these initiatives Triton has four primary and eight visiting clinics.
Direct Capital partnered with businessman John Ryder, Howard Bretherton and Graeme Dodd to invest in Triton alongside the existing audiologist owners in November 2006. The business was acquired at that time as an excellent regional platform from which the shareholders intended to develop a much larger national business; the expansion initiatives announced above represent positive steps towards this goal.

Direct Capital Contact:

Tony Batterton, Investment Director, (9) 369 9235

17 September 2007

Pest control specialist gets injection from Direct Capital

Direct Capital today announced its seventh investment by Direct Capital Partners’ funds, confirming that the prospects for the private equity market in the current environment remain positive throughout Australasia, particularly as the firm provides both expansion and buyout equity.

Direct Capital has taken a cornerstone stake in Innovair Group Limited, who manufacture and market a range of world-class advanced automatic air dispensing systems.

Direct Capital’s investment has been completed from its Direct Capital Partners III and Pohutukawa Private Equity funds. Direct Capital has initially acquired a 28% shareholding in Innovair alongside the original shareholders.

Innovair is based on Robocan, a pest control product which is becoming an increasingly familiar name to consumers. Robocan is an automatic dispenser of pest repellent and pest control sprays. Innovair is making strong inroads into this market and has a competitive advantage with its dispensing technology – “advanced mist spray technology.”

To date the company has achieved strong sales growth in both New Zealand and Australia and Innovair intend to launch Robocan in South Africa this summer. The company is the number one selling pest control product in New Zealand with market share of 35%. Innovair is also developing a number of new products for application across a range of channels.

The company has undertaken IP protection in a number of offshore territories and further markets have been identified for expansion.

Direct Capital believes the company to have high growth potential and was attracted to the investment opportunity by the significant opportunities for international expansion, which will require further capital and support from shareholders.

Direct Capital will invest alongside company founder Nigel McLisky, Chairman Simon Barclay and Managing Director Lyndsey Wyeth, all who are significant shareholders and directors of Innovair.

Mark Hutton founding partner of Direct Capital said “Innovair has achieved a tremendous amount in Australasia and we look forward to our involvement helping to support continued growth. We believe this company to have high growth potential”.


Mark Hutton, Direct Capital Private Equity, +649 369 9223

Lindsay Wyeth, Innovair Group, +649 527 2756

2 May 2007

Direct Capital and Management Acquire Paper Coaters

Direct Capital today announced that it has partnered with senior management in the succession management buyout of Paper Coaters Limited (“Paper Coaters”). Direct Capital’s investment has been completed from its Direct Capital Partners III and Pohutukawa Private Equity funds. Paper Coaters senior management have invested alongside Direct Capital.

Paper Coaters is one of Australasia’s leading flexible packaging companies with plants in New Zealand and Australia, it designs, manufactures and supplies packaging to the paper, food and industrial markets by adding value to paper, foil and polymers.

Direct Capital was attracted by the strong market position, capable management and progress made in building a trans-Tasman business. As part of Direct Capital’s investment, current COO, Brent Devlin has been appointed Managing Director.

Mark Hutton and Gavin Lonergan from Direct Capital will join the Paper Coaters board alongside Brent Devlin. It is expected that an external chairman and Australian based director will be added shortly.

Brent Devlin, Managing Director of Paper Coaters said, “We are excited to have a partner who has enabled the transition of the business through succession and is seeking to support our growth across the Tasman.”

Retiring majority owner Graham Mountfort was delighted that the business would stay in New Zealand hands, “the ideal exit scenario for myself was to pass ownership of the business over to Brent and his team, and with Direct Capital’s support this has been achieved”.

Mark Hutton, founding partner of Direct Capital said, “Direct Capitals investment has enabled the next generation of management to acquire the business from its current owners. We look forward to supporting the team led by Brent as the company continues its expansion and development.”

For further information:
Mark Hutton, Direct Capital Private Equity, +649 369 9223
Brent Devlin, Paper Coaters, +649 579 8945

27-4-07

Direct Capital portfolio company Express Logistics issued the following press release regarding the purchase of Victory.

Express Logistics Group (ELG) is pleased to announce that, through its wholly owned subsidiary Express Logistics Australia Pty Limited, it has completed the purchase of Victory International Logistics Pty Limited (Victory).

ELG is a leading New Zealand based international logistics service provider, offering a complete range of freight forwarding, logistics and customs brokerage services.

The purchase is based on bringing together the strengths of Victory and Express in the Australian market, to create a strong freight forwarding, customs clearance and logistics business with a focus on the following key trade-lanes: China & SEA Imports; USA Imports & Exports; and Trans-Tasman freight, distribution & Logistics.

“This acquisition provides further depth and scale to our existing Australian branch network,” said ELG Managing Director, Graeme Mann.  “The merger will create a number of positives for both Victory and Express businesses, clients, suppliers and staff.  The end result will be a stronger combined business that will provide the combined client base with access to a broader range of services.”


-Ends-


For further information contact:

GRAEME MANN
Managing Director
Express Logistics Group Limited
(09) 275 4000

30-11-2006

Direct Capital today announced that it has partnered with businessmen John Ryder and Howard Bretherton to invest in Professional Hearing Services (‘PHS’).

PHS is a hearing aid retail business, providing hearing tests and hearing aid fitting services. The first primary PHS clinic was opened in Hamilton in 1988 by founding audiologists Brett Robertson and John Ho. PHS established its second primary clinic in Tauranga in 1999, in partnership with audiologist Carey Wright. Three further visiting clinics have been established in Thames, Waihi and Matamata and PHS is now the leading hearing aid retail business in the Waikato / Bay of Plenty region.

Hearing loss is estimated to affect 1 in 10 people worldwide. Ageing population demographics, technology innovations and aesthetic enhancements to hearing aids are expected to continue to underpin growth in the demand for hearing aids and associated hearing aid fitting services.

John Ryder and Howard Bretherton have been appointed Executive Chairman and Director respectively of PHS. Ryder has founded and run a number of successful businesses including Ryman Healthcare, now an NZX40 company with a capitalisation of over $900m. In 2005, Ryder was also appointed Chairman of Direct Capital. Bretherton was involved in the successful development of Michael Hill Jewellers, which he joined when the business had just 2 stores, rising to Joint Managing Director until 2003. More recently, Bretherton has been a Director of apparel retailer Hallensteins Glassons. Ryder and Bretherton will lead the expansion and opening of further PHS outlets.

A Direct Capital representative will be appointed to the PHS board and Brett Robertson will represent the founding PHS audiologists.

Direct Capital will have a 47% shareholding in the company, with the investment being completed from its Direct Capital Partners III and Pohutukawa Private Equity funds. Both Ryder and Bretherton will also be significant shareholders in the business along with the founding PHS audiologists who retain an interest.

For further information:

Tony Batterton, Investment Director, Direct Capital, 9 307 2562.

26th October 2006

Pohutukawa Private Equity announces its fourth direct investment into a company. Pohutukawa and other funds managed by Pohutukawa managers, Direct Capital, have acquired 20% of the shares in Gluck Pty Limited, one of Australia’s larger privately owned supply chain services companies.  Pohutukawa has acquired a 4.48% equity stake in Gluck. This shareholding will be held in a NZ holding company, International Forwarding Ltd.  Other investors include Direct Capital’s institutional fund, DCPIII, the investment company Waterman Holdings and co-investors with the balance of the shareholding retained by Gluck executives.

The following is the official media release by Pohutukawa manager Direct Capital:

Direct Capital today announced that it had completed an investment for an initial 20% shareholding in Gluck Pty Limited (“Gluck”), alongside investment company Waterman Holdings. Direct Capital’s investment has been completed from its Direct Capital Partners III and Pohutukawa Private Equity funds. The balance of the shareholding is to be retained by Gluck’s existing executive shareholders Mark Kellett and Brendan Moloney. Direct Capital and Waterman have an option to provide additional capital to the company to support anticipated growth initiatives.

Gluck is one of Australia’s larger privately owned supply chain services companies, employing over 150 people throughout Australasia. Its primary sites are Melbourne and Sydney, with a significant operation recently established at the Auckland airport. Gluck’s range of services include air and sea freight, freight optimisation, custom clearance services, local 3PL services and general shipping and freight management services on all major international trade lanes to and from Australia and New Zealand.

Gluck specialises in providing supply chain services for vertically integrated companies, focusing on the textiles, clothing and footwear industries. It services both medium sized businesses and multi-national groups based in Australasia. Gluck’s strength’s include:

• an infrastructure of 16 offices and consolidation / processing centres throughout greater China;
• an ability to provide unit pick, pack and distribution both offshore and locally in Australasia;
• an integrated e-business solution extending from international purchase order through to proof  of delivery to store /distribution centre;
• a strong management team with a long history of success in the industry.

Mark Kellett and Brendan Moloney remain as executive directors and will be joined on the board by Mark Hutton as the Direct Capital representative and new non executive director Michael Dwyer, ex KPMG Melbourne.

Mark Hutton, founding partner of Direct Capital said, “The Gluck investment is further evidence of our on-going interest and investment in the dynamic and expanding logistics sector, which is well regarded by investors internationally. Direct Capital is looking forward to supporting the Gluck management team, which has demonstrated a successful track record of growth, as the company continues it’s expansion and development.”

Mark Kellett, Gluck Managing Director, added that "The investment by Direct Capital and Waterman will allow us to immediately take advantage of growth opportunities including strategic acquisitions within the Australian market, in the knowledge that we have both the capital and strategic support to do so. This is a very positive development for Gluck and all stakeholders as it will ensure we can seize the opportunities now available to offer customers a full range of services throughout Australasia."

For further information:
Mark Kellett , Gluck Pty Limited, + 61 3 9223 2222.
Mark Hutton, Direct Capital Private Equity, + 64 9 369 9223.


For further information on Gluck visit 
www.gluck.com.au
For further information on Direct Capital visit www.directcapital.co.nz

25 November 2005

Pohutukawa Private Equity announces its third direct investment into a company. Pohutukawa and other funds managed by Pohutukawa managers, Direct Capital, have acquired 51% of the shares in New Zealand Pharmaceuticals (NZP).  Pohutukawa has acquired a 15.8% equity stake in NZP. Other investors include Direct Capital’s institutional fund, DCPIII with 16.5%, BioPacific Ventures with 14.1%, co-investors 4.6% and the remaining 49% of NZP will continue to be owned by the management and staff of NZP and strategic investor Shin Nippon Yakugyo, a Japanese specialty chemicals business. 

The following is the official media release by Pohutukawa manager Direct Capital:

Direct Capital acquires 51% of New Zealand Pharmaceuticals

Leading private equity firm Direct Capital has acquired a shareholding of 51% in New Zealand Pharmaceuticals (‘NZP’), which produces specialty chemicals for some of the world’s leading pharmaceutical and biotechnology companies. Direct Capital’s investment has been completed from its DCPIII and Pohutukawa private equity funds and from BioPacificVentures (BPV), allowing Direct Capital to combine its traditional private equity strength with BPV's specialist industry expertise.

The remaining 49% of NZP will continue to be owned by the management and staff of NZP and strategic investor Shin Nippon Yakugyo, a Japanese specialty chemicals business.

NZP manufactures pharmaceutical intermediates and diagnostics and also produces a range of ingredients used in dietary supplements. NZP’s core competence is in the manufacture of natural biochemicals under Good Manufacturing Practice (GMP) conditions which ensures its products conform to pharmaceutical industry quality assurance standards. Almost all of NZP’s revenues are achieved from export markets.

The company’s main product, cholic acid, is manufactured from bovine bile and is an intermediate for a drug used to treat liver related diseases. Other animal based products include taurine, an amino acid used in infant formula, heparin, a blood anticoagulant and ferritin, a natural iron supplement.

One of NZP’s more recent product initiatives is ‘ManNAc’, the first of what NZP hopes will be a number of synthetic compounds produced for the manufacture of glycotherapeutic drugs, a large fast growing category of the global pharmaceuticals market and of increasing significance to NZP’s business. NZP’s role in this area has developed from its relationship with Industrial Research Ltd, which is developing a range of these specialty carbohydrates of interest to the international biotechnology industry. Financing for Direct Capital’s acquisition includes the capital expenditure funding required by NZP to build a new factory to manufacture these glycotherapeutic intermediates. Construction is scheduled for 2006 on the site of the existing head office and manufacturing plant in Linton near Palmerston North.

Tony Batterton and Howard Moore (representing Direct Capital) will join management representatives on the NZP Board and a new Independent Chairman will also be appointed shortly.

Richard Garland, NZP Managing Director, commented that “Direct Capital bring a wealth of experience in supporting the development of growing businesses like NZP and, in BiopacificVentures, people and strategic partners with considerable experience in the markets in which NZP operates. The investment by Direct Capital is an important pre-cursor to the planned public listing of NZP, which we are targeting within the next three years. This is an exciting and positive development for NZP and our shareholders.”  

Ross George, Managing Director of Direct Capital said that “NZP is an extremely well positioned company, with an excellent team of people and attractive growth opportunities in all of its areas of operation. We look forward to working with the management and employees to continue the company’s success.”

For further information

NZP - Richard Garland, Managing Director, 06 952 3800

Direct Capital - Ross George, Managing Director or Tony Batterton, Investment Director, 09 307 2562

BioPacificVentures - Bill Kermode, Chairman or Howard Moore, Executive Director, 09 307 2562

4 October 2005

Pohutukawa Private Equity announces its second direct investment into a Company.  Pohutukawa and other investors sourced by Pohutukawa managers, Direct Capital, have entered into an unconditional agreement to acquire Express International Logistics Limited with final completion by 31 October 2005.  Pohutukawa will attain a 21% equity stake for an investment of $2.125m. Pohutukawa is committed to investing a further $787,000 if required by the Company in the future. 

The following is the official media release by Pohutukawa manager Direct Capital:

Leading logistics operator Express International Logistics announces succession buyout by Management and Direct Capital

In conjunction with management, Direct Capital today announced that it had signed an unconditional agreement to acquire Express International Logistics (“Express”), with final completion by October 31. Direct Capital, Pohutukawa Private Equity and investment company Waterman Holdings have acquired a majority shareholding in Express, with the balance of the shares owned by Express founder Brendon Thomas, Managing Director Graeme Mann and other senior Express managers and staff who are investing alongside Direct Capital and Pohutukawa.

Express is one of New Zealand's leading logistics companies, based in Auckland and Sydney with five other sites, employing over 200 people. Throughout New Zealand and Australia Express are licensed customs brokers, IATA accredited airfreight forwarders and operate their own customs bonded warehouse facilities. Beyond Australia and New Zealand, Express works with a select network of agents to offer import, export air and ocean freight services on all major trade lanes to and from Australia and New Zealand.

Brendon Thomas and Graeme Mann will remain as directors alongside representatives of both Direct Capital and Waterman. Graeme Mann will continue as Managing Director of Express and an Australian based independent director is expected to be appointed shortly.

Mark Hutton, founding partner of Direct Capital said, “The Express buyout is an exciting opportunity to invest in a market leading logistics business in a dynamic and growing sector. Direct Capital is looking forward to working with the Express management team to support the company’s continued expansion and development and also effect a seamless succession plan.”

Graeme Mann, Express Managing Director, added that "The investment by Direct Capital, Pohutukawa and Waterman allows us to take advantage of growth opportunities including further development in the Australian market, in the knowledge that we have both the capital and strategic support from our new partner to do so. This is a very positive development for Express including an opportunity for staff to participate as shareholders. It will ensure the business will expand alongside our key stakeholders."

Express provides clients with total supply chain solutions. This includes advice on issues surrounding international trade, buying terms and supply chain design and structure. This is critical for a number of our internationally focussed customers who are experiencing high growth rates and are sourcing product from one region and selling globally.   

For further information:

Graeme Mann, Express International Logistics Limited, + 64 9 275 4000.

Ross George or Mark Hutton, Direct Capital Private Equity, + 64 9 307 2562.

For further information on Express Logistics visit www.xprs.co.nz

BioPacificVentures Investments

BPV_Logo

BioPacificVentures (BPV) is one of the world's largest food, nutrition and agriculturally focused venture capitalists, specialising in the convergence of food and health with a focus on prevention, nutrition, food technology and agbiotech. BPV is now fully invested.

BPV's investments focussed on  life science opportunities with an Australasian focus. BPV took the lead or co-investment positions in business ventures ranging from NZ$2 to NZ$10 million.

BPV is supported by strategic and financial investors with global reach and industry specific expertise. The largest investor is the world’s biggest food company, Nestlé; the largest local investor is the leading agribusiness firm PGG Wrightson.

BPV had a particular focus on opportunities in the emerging "wellness through prevention" market, reflecting the increasing trend in healthcare towards the prevention of chronic diseases. Opportunities of particular interest included functional and medical foods, nutraceuticals, cosmeceuticals, skin care, dietary supplements, infant and sports nutrition, immune stimulation and anti-aging therapies.

BPV has a strong internationally experienced management team, the result of a collaboration between leading New Zealand venture capital firm Direct Capital, international life sciences venture capital manager, inventages and one of the world’s leading life science research institutions, AgResearch.

Pohutukawa is pleased to be involved as an investment partner in BPV in the life sciences and agri-tech sphere.

Pohutukawa has an investment commitment to BPV was for an amount of 10% of Pohutukawa's committed capital.

Read more on the investment focus of  BioPacificVentures.


BPV Summary of Current Investments

In April 2005 Pohutukawa announced its intention to invest up to $5.3 million in investment opportunities through BioPacificVentures (BPV).  This is a specialist life science fund focused on plant and animal based technology, agricultural improvements, and nutritionally enhanced foods and food safety. 

Current BPV investments include:

22 February 2006 - Vital Food Processors Ltd

22 September 2008 - CoDa Therapeutics Inc.

For further information on BioPacificVentures see: www.biopacificventures.com