CHAMP wins Blue Star with NZ$385 million knockout

CHAMP will control approximately 84 per cent of BSPG, while management and the current controlling shareholder and managing director, Tom Sturgess will collectively retain approximately 16 per cent ownership. BSPG has advised that all of the existing senior management team will continue to be employees and shareholders of the business.

Upon settlement of the transaction, BSPG is expected to have a balance sheet with approximately $100 million of senior debt and $105 million of Capital Bonds, which were issued in late
2005. Sturgess, said the new owners wanted "business as usual" and that he welcomed the added financial and strategic support CHAMP would provide.

Blue Star is CHAMP's first acquisition in New Zealand, although the company operates on both sides of the Tasman. "Blue Star is attractive to CHAMP not only for its leading market positions, but also because it has an experienced incumbent management team, an excellent industry reputation, a long term contracted revenue base, and outstanding sustained growth," said CHAMP director, Nat Childres.

Industry speculation is that this is not the final move by CHAMP in the printing industry with insiders confirming it has made an offer on at least one other Australian-based printing company.