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CHAMP PE sells off Blue Star’s Australian operation

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CHAMP Private Equity is said to have exited the Australian arm of printing and communications company Blue Star Group to a consortium including Wolseley Private Equity and CaxtonWeb. Blue Star’s New Zealand operations area also expected to be sold off.

The business was put up for sale in July after winning the support of senior lenders to review options regarding a whole or partial sale. Goldman Sachs was appointed to manage the process.

CHAMP acquired an 84% stake in Blue Star for NZ$385 million ($308 million) in 2006. In March 2011, it made an additional capital contribution of an undisclosed amount.

Later in the year the private equity firm supported a restructuring package for Blue Star that saw bondholders agree to write off NZ$32.5 million of interest on their $105 million worth of bonds. This allowed the company more time to repay its NZ$195 million in outstanding debt.

The company, which offers printing, direct mail and design services, warned earlier this year that trading conditions remain extremely difficult, adding that it was unsure what value, if any, to attach to its outstanding bonds.

The executive chairman of CaxtonWeb is Geoff Selig who served as CEO of Blue Star's Australian operations before CHAMP bought the company.

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