Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

ACC-backed Allegro sees Carpet Court as potential IPO

ACC-backed Allegro sees Carpet Court as potential listing opportunity

By Paul McBeth

Sept. 21 (BusinessDesk) - Allegro Funds, the Australian private equity firm that counts the Accident Compensation Corp's investment arm as an investor, is optimistic its latest New Zealand investment, Carpet Court, is a candidate for potential listing once the flooring retailer has been whipped into shape.

The Sydney-based firm bought New Zealand's Carpet Court in July in a deal to recapitalise the firm and leave it debt-free after the transaction. Allegro co-founder Chester Moynihan told BusinessDesk the company has about 25 percent of the New Zealand market, which is highly-fragmented with a number of small, family-owned operators. Allegro typically targets companies it sees as "capable of transformation" that can be realised over three to five years through a trade sale or initial public offering.

"Carpet Court is a real opportunity to improve the business, to invest in the business, and to drive growth both organically and also through bolt-on acquisitions," Moynihan said. "What we want to do in the investment timeframe is improve operations and grow to the point where it's ready for a float. We like the fact it's the market leader."

The investment is the third by Allegro's second fund, which closed with A$180 million in June, including a commitment from ACC.

Carpet Court sells a variety of flooring products across 60 outlets nationwide, employing more than 400 staff, and is led by veteran retail executive Rob Smith.

The flooring firm is in a sweet spot at the moment as the country's house building boom drives up demand for household goods, with retail spending on furniture, floor coverings, houseware and textiles at a record $2.14 billion in the year ended March 31.

Moynihan said consumers take a much more considered approach in making carpet purchases than many other retail transactions and typically want a more tactile experience when choosing their carpet.

Carpet Court is Allegro's second investment in New Zealand following the firm's recent sale of three assets - Cowley Services and Trilogy Building Services, and Spectrum Fire & Security in Australia - to France's GDF Suez. It owns 87.5 percent of Carpet Court, with the remaining 12.5 percent held by interests associated with director Stefan Preston, who helped turn around the fortunes of lingerie maker Bendon.

Moynihan sees New Zealand as an attractive investment destination, citing the strong leadership of Prime Minister John Key and his deputy and Finance Minister Bill English.

"They're sensible leaders that have the economy's well-being at their heart," he said. "It's not a small factor in us being comfortable to commit to this investment."

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>

ALSO:


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>

ALSO:

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>

ALSO:

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>