Wolseley's Blue Star targets Australia printing consolidation

The combined entity will have revenues of A$700 million ($646 million) and operations along Australia's eastern seaboard, including web printing capacity, sheet-fed offset printing, digital printing and an augmented reality division.

"Blue Star is leading the consolidation of the sector. In such a market consolidation the best management teams and the strongest balance sheets win. Blue Star and IPMG have both," said Angus Stuart, a director at Wolseley Private Equity.

The PE firm acquired Blue Star from CHAMP Private Equity in 2012 following a restructuring process. It worked in partnership with CaxtonWeb, which is led by Geoff Selig, a former CEO of Blue Star's Australian operations.

CHAMP acquired an 84% stake in Blue Star for NZ$385 million ($308 million) in 2006 and made an additional capital contribution in March 2011 as the company struggled during the post global financial crisis period. A restructuring package agreed later in the year saw bondholders take a haircut, enabling Blue Star to repay NZ$195 million in outstanding debt.

Last year Blue Star acquired several Australia-based assets from rival printer Geon after it was placed into administration. Blue Star New Zealand - which was bought by Mercury Capital in 2012, in partnership with another former executive of the business - also picked up assets from Geon.

Wolseley is currently raising its third fund, which has a target of A$300 million. It will seek to invest in six companies with enterprise values ranging from A$30 million to A$120 million. To come under consideration, companies must also be generating A$7-15 million in annual EBITDA.

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• Topics
• Industrials
• Australasia
• Buyout
• M&A
• Australia
• Wolseley Partners
• buyout