Carpet Court is in a sweet spot as the country's house building boom drives up demand for household goods. Photo / NZME.
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 Courtin 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.
Carpet Court is Allegro's second investment in New Zealand following the firm's recent sale of three assets - Cowley Services, Trilogy Building Services and Spectrum Fire & Security in Australia - to France's GDF Suez.
It owns 87.5 per cent of Carpet Court, with the remaining 12.5 per cent held by interests associated with director Stefan Preston, who helped turn around the fortunes of lingerie maker Bendon.
Carpet Court •Sells a variety of flooring products. •60 outlets nationwide, more than 400 staff. •25% market share in New Zealand. •87.5% owned by Allegro Funds.
