Investment in Phil & Teds Most Excellent Buggy Co.

MEDIA RELEASE
8 May 2006

AMP Pencarrow Makes Cornerstone Investment in Phil & Teds Most Excellent Buggy Company

AMP Pencarrow Private Equity Fund has announced today that it has acquired a cornerstone shareholding in leading New Zealand nursery products business, Phil & Teds Most Excellent Buggy Company (phil&teds), alongside existing management.

Phil&teds, recently given fanfare on major US TV programme “The Today Show” for its innovative designs, manufactures and markets a range of premium nursery products, and exports to 20 countries.

With a growing portfolio of branded products focused on the “kids and travel” market the company was recently recognised for its innovation with an award from the world’s leading nursery products trade fair in Cologne, Germany. Such design flair has fuelled phenomenal sales growth in the past three years, with exports accounting for 92% of phil&teds sales, and market penetration especially strong in the US, Canada, the UK, Continental Europe, Scandinavia and Australia.

Pencarrow Executive Director, Nigel Bingham, describes phil&teds as an excellent example of a successful, design-led, export-focused business.

“Phil&teds has built an amazing depth of knowledge and feel for its market. It employs innovative design and a ‘can-do’ attitude to succeed in creating world class, differentiated products, a brand with attitude, strong customer support, and sales growth in multiple markets.”

“This is precisely the sort of company New Zealand needs a lot more of and as such will represent an exciting addition to AMP Pencarrow’s portfolio of quality New Zealand businesses”.

Part of AMP Pencarrow’s investment process involved an offshore survey of phil&teds buggy owners to assess brand momentum. “The survey confirmed two critical things for us,” said Mr Bingham. “Firstly, those phil&teds buggy owners that answered the survey were incredibly positive about their buggies; secondly, and, without exception, they were adamant that they would recommend the product to friends or family. There is no better measure of market strength for a product set.”

Phil&teds majority shareholder and CEO, Campbell Gower, said that he was delighted to have Pencarrow as an investment partner.

“Pencarrow has strong credentials in backing companies with design and branding focus and given the importance of this to phil&teds’ growing worldwide business we see Pencarrow as an ideal partner. Our team is incredibly excited by the prospect of working with Pencarrow to build on our success and establish Phil & Teds as a truly global brand of uniquely New Zealand origin.”

“We’ve certainly come a long way from that garage in Berhampore!”

Pencarrow Executive Directors, Nigel Bingham and Richard Cutfield, will join the phil&teds 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 over $33 million or 44 % of the Fund in four businesses.

AMP and Pencarrow 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; and the world’s second-largest aviation crew and pilot leasing company, Rishworth Aviation.

ENDS.

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