Pacific Equity buys plastics arm

By PAULA OLIVER

The large Australian wallet behind one of New Zealand's sharemarket darlings has opened again, this time swallowing up Carter Holt Harvey's rigid plastic products business.

Sydney-based venture capitalists Pacific Equity Partners, investors in high-flying beverage company Frucor, will buy the business for an undisclosed amount. It employs 400 in Albany, Hamilton, Hastings and Naenae, making plastic detergent bottles and foam meat trays.

It has provided Carter Holt with an annual turnover of $75 million, but Pacific Equity Partners spokesman Rickard Gardell said this could be vastly increased with a bit more care and attention.

"It hasn't been the main focus of Carter Holt, but it will be an extreme focus for us, and our strategy will be to grow rather than shrink the business," he said.

"It is a business with high market share, a good management team and a strong technology base, which is what we look for."

Pacific Equity Partners' successful investment in Frucor has seen the company become a sharemarket favourite since it was floated in June.

Mr Gardell said a similar strategy could be expected with the newly named Vertex plastics company.

"It has all the aspects we need to expand from, in New Zealand and globally," he said. "It's not dissimilar to Frucor, and our strategy of using the existing skill base should work here too."

Carter Holt Harvey manager of investor relations Jim Whineray said the business had been sold because it did not fit the strategy Carter wanted to follow.