Direct Capital Invests in Hiway Group Limited
Direct Capital, through its Direct Capital IV and Pohutukawa II funds, today announced that it had completed an investment in Hiway Group Limited, New Zealand’s leading provider of specialist roading and ground stabilisation services.
Hiway Group is the family business of Peter Boocock and his sons, John and Paul. The investment by Direct Capital is to fund the sell-down by Peter Boocock of his shareholding. Following the acquisition Direct Capital will join John and Paul Boocock and existing management as shareholders in the business.
Hiway Group has a long and successful history dating back to its establishment in 1982. The company has led the way in introducing modern techniques and specialist equipment used in stabilising the ground works associated with road construction and civil works. Hiway Group operates through two main operating companies, Hiway Stabilizers and Hiway GeoTechnical deploying a number of specialist technologies including deep soil mixing, soil nailing, aggregate modification, sub-grade stabilisation, fill drying and foamed bitumen recycling. The company also offers a number of environmental contracting services including soil recycling and site remediation.
Facilitating the change of ownership from Peter to his sons and management team is a typical example of the investment that Direct Capital makes in the private company sector.
“Private company owners have generally spent their careers establishing and growing their business”, commented Direct Capital’s Simon Plowman. “When it comes time to think about freeing up capital and spending more time with family and pursuing other interests, selling the business to your management team is a great option and it’s usually the easiest path to take.”
For John and Paul Boocock, bringing in Direct Capital as a partner to facilitate the sell-down by Peter was an easy decision to make.
“Paul and I have been in the business from the beginning and our management team has been together a long time. We understand the business and will continue the culture and long-standing relationships that we’ve built up over the last 30 years”, said John. “It’s been great to have been able to sell Peter’s shareholding while continuing our ownership and management of the business and to continue its long record of success.”
With significant reconstruction activities ahead in Christchurch and Queensland as a result of the earthquakes and flooding experienced through the last year, and the ongoing general investment in roading infrastructure in both New Zealand and Australia, the growth potential for Hiway Group is clear.
The investment in Hiway Group is the sixth investment from the Direct Capital IV fund which raised $325 million in 2009 for investment into private companies.
John Boocock, Managing Director, Hiway Group +64 21 941 034
Simon Plowman, Direct Capital Investments Limited +64 21 489 027