By SIMON HENDERY
Blue Star Print Group, the subject of a management buyout in July, is eyeing growth opportunities in Australia.
The Auckland-based commercial printer, which has operations on both sides of the Tasman, says that because its share of the New Zealand market is already large, it will target Australia
for new business.
Blue Star Print management paid $165 million for the company when it was peeled off Blue Star Group in July, after its US parent company, US Office Products, filed for bankruptcy protection.
A month earlier, USOP sold its Australasian bookselling businesses - Whitcoulls, Bennetts, and the Australian Angus & Robertson chains - to London-based WH Smith.
The group's other units, Blue Star Business Solutions and Blue Star Consumer Retailing, have also been sold.
Blue Star Print chairman Tom Sturgess, former chief executive of the larger group, said the slimmed-down print company was seeing the benefits of a tighter business focus.
Blue Star turned over $278 million last year and employs about 1000 on both sides of the Tasman.
One of its main operations is a $100 million, five-year contract to print all Telecom's phone directories at its Masterton plant, which it renewed in July.
Last month, it launched a new offset printing business in Sydney, Webstar Australia.
"[The new business] opens up the market for high-end, relatively short- run, magazine titles," Mr Sturgess said.
"We've received a very gratifying response from the marketplace thus far. Those presses are booked 24 hours a day, seven days a week already."
About 45 per cent of Blue Star Print's revenues and earnings before interest, tax, depreciation and amortisation had historically come from Australia, he said.
"The NZ businesses will continue to receive reinvestment to maintain and grow but the real strong growth opportunity for us is in Australia."
The company is raising $45 million through an issue of 7-year fixed-rate bonds, which will be used to refinance borrowings to finance the management buyout.
The bond issue prospectus forecasts operating revenue will rise to $294 million for the 12 months to June 30 next year.
