CHAMP out of diapers

Castle Harlan Australian Mezzanine Partners has sold Australian Pacific Paper Products for A$75m, about three times the firm’s initial investment.

Castle Harlan Australian Mezzanine Partners (CHAMP) has sold its stake in diaper maker Australian Pacific Paper Products for A$75 million ($58 million; €48 million). The buyer was Australian firm Gresham Private Equity.

The sale earned the firm an IRR of 56 percent on the investment. CHAMP purchased the company in December 2002 for $53 million and recouped 80 percent of the investment in a 2004 recapitalization, according to a statement.

Melbourne-based Australian Pacific Paper Products is the second largest manufacturer of disposable diapers in Australia, serving both the continent and New Zealand. In 2004, the company’s EBITDA was A$13 million. The firm sells products under the Merit, Babylove, Cosifits, Daycare and Lullaby brands. 

Sydney-based CHAMP was founded in 2000. Castle Harlan, the New York-based mid-market buyout investor, is a strategic investor in the firm.