Graeme Hart diversifies - into car parts
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$20.2 million, according documents lodged with the Securities and Exchange Commission in July.
The buy-out is expected to be completed by March 2011.
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Comments and questions8
The govt needs to make this man SIR graeme hart
That'll be based on the tax he pays here and the donations to Nat Party.
I'd also wait and see what happens here.
Motor car parts are like guns....everyone thinks they are money for jam. Few succeed for any length of time.
Buy US companies when the US$ is LOW! Smart Investor.
...and out comes all the kiwi couch entrepreneurs.
It makes a lot of sense, cars will be on the road for longer and longer in the US (unless the FED initiates another cash for clunkers deal). How better to make money than sell spares into that market.
Use his keen sense of smell to route out any under performers in the business, cut costs, sell assets, get it humming and then do an IPO when the market has grown to understand the underlying change in the car industry. Plus of course American patriotism will want to support local businesses.
Assumining the deal closes, Well done GH
Graeme Hart is a legend! Gotta love him..
. . . wonder if GH is interesred in buying and owning NZ outright then selling off to Aul ?
that was too huge for the car parts. ive been buying my exhaust system from corsa brand but for a very cheap price. well i think he is really a legend no questions about that.