KKR, Allegro target Australia's ailing Geon
KKR and Allegro Funds have placed Australian commercial printing company Geon Group into administration and are looking to buy parts of the business out of receivership. The pair became creditors last year following the acquisition of a portfolio of distressed loans from BOS International.
Formerly known as Pacific Print Group, Geon was founded in New Zealand but relocated to Australia in 2004. Gresham Private Equity took a controlling interest in the company one year later and went on to complete more than 15 bolt-on acquisitions as part of efforts to consolidate the fragmented print industry.
The BOS portfolio, sold by Lloyd's International, included an $80 loan to Gresham from 2007, presumably used to refinance its acquisition of Geon. Gresham has already exited its remaining equity interest to KKR and Allegro as part of a debt-for-equity swap.
According to the Sydney Morning Herald, Geon CEO Graham Morgan told staff that the new owners were long-term believers in the business. "They will commit substantial resources to make Geon successful, including the availability of additional capital and significant senior operational and financial resources," he said.
Geon is not the first Australasian printing business to run into difficulty. CHAMP Private Equity exited Blue Star Group last year after winning the support of senior lenders to consider a whole or partial sale. The PE firm spent much of 2011 putting together a restructuring package for the company.
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