Direct Capital Mergers and Acquisitions Summary

Private Equity Firm Profile

Direct Capital’s most common sectors for investment arebusiness services (21%) and healthcare services (8%) . The Firm’s most common investment types include buyout (lbo, mbo, mbi) (70%) and stake purchase (16%). In total, Direct Capital has invested in 2 different countries. Its largest (disclosed) acquisition occurred in 1998 when it acquired Tasman Building Products for $7M.

The Firm’s most common exit type is secondary buyout (24%). Direct Capital’s largest (disclosed) exit occurred in 2001 when it sold Tasman Building Products for $117M.

Join Mergr to view Direct Capital’s full profile and discover more middle-market private equity firm investors just like it.

M&A Summary

  • M&A Total Activity56
    • M&A Buy Activity39
    • M&A Sell Activity17
  • Total Sectors Invested 23
  • Total Countries Invested 2
  • M&A Buy/Sell Connections 3

Direct Capital

Level 4, 2 Kitchener Street,
Auckland,
New Zealand
+64 9 307 2562
www.directcapital.co.nz
dcm@directcapital.co.nz

Direct Capital is a private investment firm focused on private equity and venture capital investments in Australia and New Zealand. Direct Capital's later stage investment area looks to commit NZ$15 to NZ$60 million in companies with revenues up to NZ$300 million. Target sectors include retail, food, consumer products, healthcare services, distribution, life science, and manufacturing. Prospective transaction situations include successions, management buyouts, expansions, acquisitions, and pre-IPO placements. Direct Capital was formed in 1994 and is based in Auckland, New Zealand.


Investment Criteria

Sectors of Interest: Apparel/Textiles, Business Services, Consumer Products, Consumer Services, Distribution, E-Commerce, Food, Healthcare Services, Life Science, Manufacturing, Packaging, Real Estate, Retail, Transportation

Target Transaction Types: Buyout (LBO, MBO, MBI), Divestiture, Growth Capital, Recapitalization, Stake Purchase

Geographic Preferences: Australia/New Zealand

Transaction Criteria Min Max
Target Revenue 30 300
Target EBITDA - -
Investment Size 20 70
Enterprise Value - -
values in millions of NZD

M&A Summary

Buy vs Sell

Year ≤ '18 '19 '20 '21 '22 '23 T
Buy (0.4/yr) # 37 2 - - - - 39
vol $7M $7M
Sell (0.0/yr) # 17 - - - - - 17
vol $122M $122M
  56

Most Recent M&A

Company Date Value Type
Beca Group 2019-02-21 - Growth Capital
Auckland, New Zealand · www.beca.com
Qestral Corporation Ltd. 2019-02-15 - Growth Capital
Christchurch, New Zealand · www.qestral.co.nz
Exact Radiology Clinics 2018-12-04 - Growth Capital
Chapel Hill, Australia · www.exactradiology.com.au
The Hiway Group Ltd. 2018-09-20 - Secondary Sale
Auckland, New Zealand · www.hiwaystabilizers.co.nz
Perpetual Guardian 2018-08-20 - Stake Purchase
Auckland, New Zealand · www.perpetualguardian.co.nz
AS Colour 2017-08-31 - Buyout (LBO, MBO, MBI)
Auckland, New Zealand · www.ascolour.co.nz
New Zealand Pharmaceuticals Ltd. 2016-04-01 - Secondary Sale
Palmerston North, New Zealand · www.nzp.co.nz
Transaction Services Group 2015-11-08 - Stake Sale
Auckland, New Zealand · www.transactionservices.co.nz
Energyworks Ltd. 2014-02-10 - Growth Capital
Brisbane, Australia · www.energyworksgroup.com.au
GoBus Ltd. 2012-04-05 - Recapitalization
Hamilton, New Zealand · www.gobus.co.nz
View All >>

M&A by Sector

Sector Current # Value All-time # Value
Business Services 3 (30%) - 8 (21%) -
Healthcare Services 1 (10%) - 3 (8%) -
Manufacturing - - 3 (8%) -
Apparel/Textiles 1 (10%) - 2 (5%) -
Consumer Services 1 (10%) - 2 (5%) -
Engineering - - 2 (5%) -
Retail - - 2 (5%) -
Transportation 1 (10%) - 2 (5%) -
Building Materials - - 1 (3%) 7M (100%)
Beverages - - 1 (3%) -
Chemicals - - 1 (3%) -
Communications - - 1 (3%) -
Consumer Products - - 1 (3%) -
E-Commerce 1 (10%) - 1 (3%) -
Food - - 1 (3%) -
Gaming - - 1 (3%) -
Information Technology - - 1 (3%) -
Life Science - - 1 (3%) -
Media - - 1 (3%) -
Medical Products - - 1 (3%) -
Packaging 1 (10%) - 1 (3%) -
Real Estate 1 (10%) - 1 (3%) -
Software - - 1 (3%) -
Total 10 - 39 $7M

Acquisitions By Geo

State/Country Current # Value All-time # Value
New Zealand 9 (90%) - 34 (87%) 7M (100%)
Australia 1 (10%) - 5 (13%) -
Domestic 9 (90%) - 34 (87%) 7M (100%)
Cross-border 1 (10%) - 5 (13%) -
Total 10 - 39 $7M

Acquisitions by Deal Type

Type Current # Value All-time # Value
Buyout (LBO, MBO, MBI) 5 (50%) - 27 (69%) 7M (100%)
Growth Capital 3 (30%) - 6 (15%) -
Stake Purchase 2 (20%) - 6 (15%) -
Total 10 - 39 $7M

Exits by Deal Type

Type Total # Value
Secondary Sale 6 (35%) 117M (96%)
Trade Sale 6 (35%) 5M (4%)
IPO 2 (12%) -
Recapitalization 1 (6%) -
Sold to Management 1 (6%) -
Stake Sale 1 (6%) -
Total 17 $122M

Deal Values

buy # Total
< $100M 1 $7M
TOTAL $7M
Largest Tasman Building Products Ltd.
$7M (1998-04-01)
sell # Total
$100M to $1B 1 $117M
< $100M 1 $5M
TOTAL $122M
Largest Tasman Building Products Ltd.
$117M (2001-09-01)

M&A Connections

Deals
Exited to
Investor(s)
29%
5 (29%)
Strategic(s)
12%
2 (12%)

Investor Summary

Investor Type

Private Equity Firm

Size

Middle-Market

PE Assets

1.2B NZD

Established

1994

Specialist/Generalist

Generalist

Leadership

Ross George

Founder & Managing Director

Mark Hutton

Founding Director & Non-Executive Director

Gavin Lonergan

Director

Heath Kerr

Director

Hugh Cotterill

Director

FAQ

When was Direct Capital founded?

Direct Capital was founded in 1994.

What type of investor is Direct Capital?

Direct Capital is a private equity firm.

Where is Direct Capital headquartered?

Direct Capital is headquartered in Auckland, New Zealand.

How much capital does Direct Capital have under management?

Direct Capital has 1.2B NZD under management.

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