Pohutukawa II Invests in PF Olsen Group Limited

15 September 2011


Pohutukawa II has today announced its fifth investment into PF Olsen Group Limited.  Pohutukawa II and Direct Capital IV have acquired a 30% shareholding in PF Olsen Group Limited, one of Australasia’s largest providers of professional forestry services.

The remaining 70% of the Company’s shareholding continues to be held by management, led by chief executive, Peter Clark, and employees.  Direct Capital’s Bill Kermode will join the PF Olsen board.

Employee ownership is strongly supported by Direct Capital and it is consistent with one of its core beliefs – that where shareholders, management and employees are aligned through their ownership interest, companies outperform their peers.    

PF Olsen manages over 170,000 hectares of plantation forests and harvesting planning for more than 3.6 million tonnes of logs annually.  As a part of its service offering, the Company provides forestry management, harvesting planning and engineering, seed and containerised seedling sales from company-owned and leased orchards and nurseries, and advisory services.  PF Olsen contracts out the physical harvesting and tending operations to third parties.  The Company’s forestry clients include timber investment management organizations (‘TIMOs), local forestry investors, government agencies, and corporate forest owners.

Based in Rotorua the Company employs 113 staff operating out of 15 offices across New Zealand and Australia.  The Company’s trans-Tasman operations and growth opportunities are a key feature that attracted Direct Capital to the investment.

“In the private company market we see a number of successful businesses that benefit from a broader market exposure across different economies.  PF Olsen is well-established in Australia and has significant growth opportunities with increasing harvestable wood volumes and investment in carbon forestry,” said Mr Kermode. “With the benefit of its long history in the New Zealand forestry sector, PF Olsen is well-placed to service its growing client base in Australia”.

Mr Clark welcomed the investment from Direct Capital. “We are looking forward to working with a local partner who can bring a shareholder-based perspective to our business and has the capital base to help us act on the opportunities we have and continue the strong growth we’ve enjoyed over a number of years”.  

The investment in PF Olsen is the fifth investment from the Pohutukawa II fund which raised $82.5 million in 2009 for investment into private companies.