20/12/06 CHAMP to Acquire Blue Star Print Group

Media Release

CHAMP Private Equity (CHAMP) has signed a purchase agreement to acquire privately owned Blue Star Print Group Ltd (Blue Star), a leading diversified print and related services business with operations throughout Australia and New Zealand, at a price which is based on an enterprise value for Blue Star of approximately NZ$385 million.

Funds advised by CHAMP will own 84% of Blue Star, while management and the current controlling shareholder and Managing Director, Tom Sturgess, will collectively retain 16% ownership.

Headquartered in Auckland, Blue Star enjoys leading market positions in several attractive segments of the Australasian commercial print market.
• Blue Star is New Zealand’s largest commercial print provider and one of the largest in Australia;
• It is a market leader in providing complete outsourced print management solutions for large corporates in Australia and New Zealand;
• Blue Star is also a market leader in the niche web-offset printing market for Australian medium volume, high quality magazines, publishing a wide portfolio of titles.

“Blue Star was attractive to CHAMP not only for its leading market positions, but also because it has an experienced incumbent management team, an excellent industry reputation, a long term contracted revenue base, and outstanding sustained growth,” CHAMP Director, Mr. Nat Childres said. The purchase of Blue Star will be CHAMP’s first acquisition in New Zealand.

Managing Director, Tom Sturgess, said the new owners wanted “business as usual” and that he welcomed the added financial and strategic support CHAMP would provide.

He went on to say “I am proud of our strong management team and the longstanding relationships we enjoy with many of our customers.” Blue Star’s key customers include multi-national companies in banking, insurance, advertising, publishing, telecommunications and retailing as well as government departments and agencies in both Australia and New Zealand.

“Key drivers of business growth over the past three years have been the significant investment in latest generation print technologies, growth in the web offset printing business, and the development of a large corporate print management strategy. CHAMP is confident that Blue Star is well positioned for future growth.” Mr. Childres said.

The purchase agreement is conditional on regulatory and normal commercial conditions being satisfied and is expected to be settled in the first quarter of 2007.

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