NEW YORK, December 11, 2002 - Castle Harlan, Inc., the New York-based private-equity investment firm, announced today that its Australian affiliate had completed the purchase of Australian Pacific Paper Products (APPP) from DSG International Limited (NasdaqNM: DSGIF) in a transaction valued at A$53 million.
Equity for the acquisition was provided by the CHAMP I Funds, which are managed and advised by Sydney-based Castle Harlan Australian Mezzanine Partners Pty Limited (CHAMP) and Castle Harlan. Members of the APPP management team are partnering with CHAMP in the deal. Westpac Banking Corporation underwrote the debt financing for the transaction.
APPP, based in Melbourne, was founded in 1988 and is Australia's second largest manufacturer and distributor of disposable diapers and adult incontinence products with annual sales of A$100 million. It employs approximately 225 people and produces more than 300 million branded and private-label diapers per year.
Bill Ferris, Sydney-based executive chairman of CHAMP, said the firm was "very impressed by the achievements of the management team in growing market share and revenues in a demanding market place."
"We believe that APPP, as the entrenched No. 2 player in this non-cyclical, non-fashion related industry, represents a great platform for continued profitable growth in its sector in Australia and New Zealand," he said.
CHAMP manages and advises more than A$830 million in private-equity capital available for investment in LBO/MBOs, growth and development opportunities and venture capital in Australia, New Zealand and the broader Australasian region.
CHAMP is one of Australia's oldest and most successful private-equity firms. It is 50 percent owned by Castle Harlan and 50 percent by the founders of CHAMP's predecessor firm.
Castle Harlan was founded in 1987 by John K. Castle, former president and chief executive officer of Donaldson, Lufkin & Jenrette, the investment banking firm, and Leonard M. Harlan, founder and former chairman of The Harlan Company.
Since its inception, Castle Harlan has completed acquisitions exceeding $5 billion. It is currently raising its fourth investment fund, targeted at $1.25 billion.