PF Olsen Group Limited - Direct Capital increases stake to 40%

On 15 September 2011 Direct Capital announced an initial investment in PF Olsen Group Limited (PF Olsen), Australasia’s largest independent provider of professional forestry services.  Direct Capital acquired a 30% shareholding in PF Olsen.

Subsequently on 30 April 2012 Direct Capital increased its shareholding to 40%.

PF Olsen manages over 165,000 hectares of plantation forests in New Zealand and harvesting planning for 3.8 million tonnes of logs annually.  Established 5 years ago, PF Olsen Australia manages 265,000 hectares of plantation forests and land across Australia.

The Company provides a range of professional services including forestry management, harvesting management, genetically improved seed and containerised seedling sales from company-owned and leased orchards and nurseries, forestry enterprise software, environmental compliance, health and safety compliance, mapping and GIS services, and advisory and other technical services.  PF Olsen subcontracts out physical operations to over 125 contractors, indirectly employing 1,500 nationally.  The Company’s forestry clients include international institutional forestry investors, local forestry investors, government agencies, Iwi groups, a number of district councils, and vertically integrated corporate owners.

Based in Rotorua the Company directly employs 127 staff operating out of 16 offices across New Zealand and Australia.  The Company’s trans-Tasman operations and strong growth opportunities are a key feature that attracted Direct Capital to the investment.

PF Olsen is the fifth of six investments that the Direct Capital IV fund has made. Direct Capital IV raised $325 million in 2009 for investment into private companies.