AMP Pencarrow invests in Home Ideas, 9 August 2006
AMP Pencarrow Private Equity Fund announced today that it has invested around $9 million in Home Ideas Group, New Zealand’s leading provider of display exhibits on behalf of companies in the building and home products industries. AMP Pencarrow has invested alongside existing owner and chief executive, Colin Lowery, providing expansion capital for the Home Ideas Group in New Zealand to acquire Home Ideas centres and associated businesses located throughout Australia.
As a consequence of the transaction Home Ideas has for the first time become an Australasian-wide business with centres represented in the eight major cities of both countries – Auckland, Wellington, Christchurch, Sydney, Melbourne, Adelaide, Perth and Brisbane. In addition licensees operate centres in Geelong, Hobart and Launceston.
Home Ideas operates exhibitor centres that offer space to companies that display a wide range of home products and services for homeowners, builders, renovators and their advisors (eg, architects and interior designers) to view efficiently in one space. Visitors to the centres are able to view the displays and are provided with brochure information on exhibitors of interest. Homes Ideas is able to put exhibitors in touch with interested visitors for follow up marketing and potential sales. The business model has proven successful in both New Zealand and Australia.
Home Ideas CEO, Colin Lowery, says that with its significantly enhanced reach, the company can now provide its exhibitor customers with coverage throughout New Zealand and Australia enabling exhibitors on both sides of the Tasman to tap into a significantly larger market.
Pencarrow Private Equity Executive Director, Nigel Bingham, said they were attracted by the strength of the Home Ideas business and the growth prospects afforded by the combination of the Australian and New Zealand businesses.
“The combined New Zealand and Australian operations provide an ideal platform for further growth” said Mr Bingham. “We will be looking to enhance the company’s website to complement the physical centres and already we are investigating the feasibility of more centres in both New Zealand and Australia to further broaden our coverage. Other related growth opportunities are also being investigated.”
Mr Lowery said he was delighted to have Pencarrow as an investment partner.
“With the significant expansion in the size of the business and its future expected growth, Pencarrow’s experience in helping grow and expand businesses will be invaluable to the company.”
Pacific Road Corporate Finance was the financial advisor to Home Ideas NZ in the merger with Australia and the capital raising and Westpac provided the debt finance.
Pencarrow Executive Directors, Nigel Bingham and Shawn Beck, will join the Home Ideas Board.
The AMP Pencarrow Private Equity Fund is a $75 million Fund that targets investments in established companies seeking expansion capital, management buy-outs and management buy-ins. The Fund was established on 1 June 2005 and has now invested around $42 million of the Fund in five businesses.
Pencarrow and AMP have been active players in the New Zealand private equity market for over 13 years with investments in the past 12 months including leading independent fragrances and cosmetics distributor, CS Company; leading lifting solutions business, NZ Crane Hire; the world’s second-largest aviation crew and pilot leasing company, Rishworth Aviation and leading nursery product designer and marketer, Phil & Teds.
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