Pohutukawa Invests in Paper Coaters

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