Not content with becoming the cardboard box king, New Zealand's richest man Graeme Hart is diversifying.
Rank Group, Mr Hart's investment vehicle, has launched a US$375 million leveraged buy out of car parts manufacturer UCI International, the company sa
Not content with becoming the cardboard box king, New Zealand's richest man Graeme Hart is diversifying.
Rank Group, Mr Hart's investment vehicle, has launched a US$375 million leveraged buy out of car parts manufacturer UCI International, the company said in a statement.
On first glance the move appears odd, as Mr Hart has spent the best part of a decade acquiring global packaging assets - most recently a US$6.5 billion merger with Pactiv. Mr Hart's empire is now estimated to be worth US$13.8b
But Mr Hart's canny spotting of bargains may have come into play. Private equity firm Carlyle Group paid $800m for 90% of UCI in 2003, meaning Rank's offer to buy is for a steep discount.
Rank will take on US$605m in debt as part of the deal, and the offer is likely to can UCI's planned sharemarket float.
Indiana-based UCI reported annual sales of US$895 million in the year ended March 31, with net profit of US$20.2 million, according documents lodged with the Securities and Exchange Commission in July.
The buy-out is expected to be completed by March 2011.
