New York-based Castle Harlan and its Australian affiliate, Castle Harlan Australian Mezzanine Partners (CHAMP) Private Equity, have acquired McMillan Printing Group, an Australian printing company, for A$67.3 million ($58 million; €42 million). The transaction was comprised of 46 percent equity and 54 percent debt.
McMillan Printing Group consists of McMillan Print in Sydney and Pirion Printing in Canberra. The purchase was made through Castle Harlan’s portfolio company, Blue Star Print Group. Auckland, New Zealand-based Blue Star was purchased in March for A$338 million. This is Blue Star’s second add-on; in June it purchased National Capital Printing of Canberra for A$12.7 million. After this latest deal is completed, Blue Star will be the largest multi-discipline print group in Australasia.
Castle Harlan and CHAMP have raised two funds in the region, CHAMP I and CHAMP II, with A$1.5 billion in equity commitments for buyouts of companies based, or with material operations, in Australasia. The CHAMP funds have completed 13 acquisitions to date, including the bail-out of Austar Communications, Australia’s second largest subscription TV operator, for an undisclosed amount, and the acquisition of Bradken Limited, an Australian manufacturer of steel consumables and capital equipment for the mining and railroad industries, for A$185.5 million in 2002.
There has been significant growth in the Australian private equity market of late. Australian private equity firm Pacific Equity Partners raised the continent’s largest fund, A$1.2 billion, last year. It was 3 times oversubscribed, illustrating rising investor enthusiasm for the region.
Castle Harlan, founded in 1987, specializes in buyouts of middle-market companies in North America and Europe.