Maui Capital: CPI deal shows commitment to the industry

Brent Lawgun, director at the New Zealand-based $250m fund, said the group invests in “businesses that have a growth strategy”.

He told ProPrint: “We can confirm that we are committed to this industry but don’t want to comment on the go-forward strategy. Our aim will be to grow CPI in conjunction with Focus Paper and BJ Ball.”

Lawgun also pointed out that “ownership of CPI only changes if the ACCC and the shareholders approve the proposal. Such approvals, if forthcoming, take time so until a final outcome is determined we are not the owners of the business.” 

Maui’s play for the trans-Tasman paper suppliers marks the largest entry of a private equity (PE) player into the Australasian print and paper sector since the deals for Geon, Blue Star and Opus by Gresham Partners, CHAMP Private Equity and Knox Investment Partners, respectively.

Lawgun would not comment on those other PE deals.

However, he stressed that Maui had picked the right time to move into the paper sector, adding that “we have done our deals with very little gearing”.

Maui set up its first two funds, ‘Hauraki No. 1’ and ‘Hauraki No. 2’, while the directors were still part of Goldman Sachs JBWere. The funds made around four to five times their original investment.

Its current fund, Maui Capital Indigo, was established in 2008 and includes a 50% stake in NZ-based insulation firm InsulPro and a 20% share of $800m-turnover engineering group Norfolk.

In October last year, it took an 80% shareholding in $300m-turnover BJ Ball, the market leader in the New Zealand fine paper market.

Lawgun would not go into detail on Maui’s plan for management of any combined paper company, but it is expected that BJ Ball managing director Andrew Bull will be central to the ongoing roll-up strategy.

“Andrew Bull will be a key person to be involved in the leadership of this group going forward. We are working through who precisely will lead this business and won’t be making any announcement until those decisions have been made,” said Lawgun.

Andrew Bull could not be contacted by ProPrint.

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