Business

Image Centre is New Zealand’s premier full service visual communications provider.

With origins as a pre-press company Image Centre has grown to offer a full suite of services including creative services, web site design and web site development, digital asset management and printing.

This suite of products enables Image Centre to offer customers a one stop shop for all clients’ communication requirements.

Strategy

Direct Capitals investment in 2000 provided expansion capital to support the continued growth in the business and further develop value added services.

The multi channel positioning has enabled ICL to become one of the largest independent print and prepress houses in New Zealand.

In 2006 Direct Capital supported Image Centre in acquiring First in Print an Auckland based printing company.

Business
Established in Palmerston North in 1978, EziBuy Limited has grown to become one of Australasia’s largest and most progressive multi-channel retailers. Its eleven flagship catalogues per annum cover all clothing categories plus Christmas gifts and houseware and its retail and internet sales channels are growing strongly. Its women’s wear sales are estimated to represent nearly 5% of total New Zealand women’s wear market sales.

Strategy
In 1999 Direct Capital provided expansion capital to support the founding shareholders’ vision of becoming New Zealand’s catalogue market leader and to expand its Australian operations.

In early 2002, EziBuy raised new equity and debt to fund the acquisition of the database and brands of its largest Australian competitor, Myer Direct. Myer Direct was the Coles Myer group’s catalogue business, selling women’s apparel and home and gifts products.

Direct Capital also supported EziBuy’s acquisition of 50% of children’s wear retailer Just Kids, which specialises in clothing for children aged from 0 to 8 years. EziBuy has become an Australasian business with the majority of its sales denominated in Australian dollars. It has proven its ability to successfully manage trans-Tasman growth.

Outcome
In early 2007, Direct Capital sold its stake in EziBuy along with significant shareholder innovations to an Australian private equity group. The company continues to grow strongly.

Business
Moore Australia manufactured, marketed and sold business forms, customer communication systems, data management systems and associated equipment to 11,000 customers in Australia. Moore had 5 principal plants and owned or operated dedicated plants on customers premises under facilities management contracts. It was the largest player in its industry in Australasia with a 25-30% market share.

In 1998 Moore Australia’s parent company Moore Corporation (a Canadian listed company) decided for strategic reasons that it wanted to sell Moore Australia. In December 1998 Direct Capital led the management buy-out and acquired a 25% stake in Moore Australia alongside management and other co investors including 3i Group plc.

Strategy
Following the successful exit by Moore Corporation the strategy was:

• To acquire synergistic businesses to lessen competition and utilise Moore capacity
• Focus on the opportunity to boost margins. Moore operated well below Australasian industry norms of 6-8%

Outcome
As the result of a buy-out offer to all shareholders, Direct Capital sold its shareholding to a new management group in November 2001.

Business
Robinhood is a manufacturer and distributor of Robinhood branded rangehoods, supertubs and ironing centres for the New Zealand and international markets.

Alongside the company’s founder, Direct Capital first became involved with the company in May 1995 with an initial $4 million investment by Direct Capital Partners. Managing Director Steve Bootten then joined with Direct Capital in 1999 to complete a succession management buyout. Robinhood reflects how succession management buyouts can lead to a successful transition for the founder and create shareholder value for all parties.

Strategy
The initial investment allowed the company to acquire the Robinhood brand in Australia and add ironing centres as a new product. Management and shareholders then worked jointly to help create a successful and vibrant business, developing strong market positions in New Zealand, Australia, the United States and Europe.

Under the succession buyout the company’s initiatives of growing Supertubs and Ironing Centres in Australia and the United States, respectively took several years to develop and required significant additional investment by the new shareholders.

Outcome
As a result of an offer by a trade buyer to all shareholders, Robinhood was successfully sold to ALESCO Corporation Ltd in March 2003.