Carpet Court is in a sweet spot as the country's house building boom drives up demand for household goods. Photo / NZME.
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 said the company has about 25 per cent of the New Zealand market, which is highly fragmented with a number of small, family-owned operators.
"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.
The investment is the third by Allegro's second fund, which closed with A$180 million ($203 million) in June, including a commitment from ACC.
The flooring firm is in a sweet spot 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.
