Case Study: Tasman Building Products
In April 1998 a syndicate of investors including Quadrant Capital completed a $165 million management buy-out of Tasman Building Products (Tasman) from Carter Holt Harvey. Tasman was a group of manufacturing and marketing companies based in Australia, New Zealand and the USA, supplying branded building products to a number of countries internationally. Tasman’s business comprised insulation products, steel roof products, stainless steel sinks and access flooring.
Quadrant’s rationale for investment was as follows:
- Critical mass business with strong brands with a first or second market position in each of its product areas
- Strong proven management team
- Managements sound knowledge of the business, its markets, and growth opportunities
- The Australian building products market was depressed but there were demand signs that the industry was recovering
- Well diversified portfolios
Quadrant’s investment in Tasman was awarded the Best Management Buy-out greater than $20 million by the Australian Venture Capital Association (AVCAL) in 2003.
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