Pohutukawa announces investment into Gluck Pty Limited

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
For further information on Direct Capital visit www.directcapital.co.nz