Current Investments
Chippendale Printing Co Pty Ltd (“CHIP”)
On 24 October 2008 HCFII acquired a majority economic interest in Chippendale Printing Co Pty Ltd.
On 24 October 2008 HCFII acquired a majority economic interest in Chippendale Printing Co Pty Ltd.
CHIP is a mid-sized provider of sheet fed print, direct mail, packaging and asset management of sales and marketing products from its plant in inner western Sydney.
Helmsman’s investment thesis includes:
· Significant unutilised production capacity with state of the art equipment providing the opportunity to grow sales without capital expenditure;
· Opportunities for low cost growth through acquisition in an industry experiencing significant consolidation through generational change and economic conditions;
· An opportunity to retain leverage at levels and interest rates not achievable at the time of investment;
· Forecast ability to fully amortise equipment leases; and
· Strong long term client base with potential to expand into higher margin specialty packaging in pharmaceuticals, food and nutrimedics.
The sheet fed print industry in Australia and New Zealand is characterised by two large, private equity backed businesses with revenues of circa $400m, but is otherwise highly disaggregated in a total market place print industry estimated market of $8.5bn.
The investment has been undertaken in conjunction with the CEO and senior management and the founding shareholders.
The investment has been undertaken in conjunction with the CEO and senior management and the founding shareholders.
