Helmsman acquire Formit Holdings Pty Ltd

Helmsman Capital completed its fourth investment on 6 November 2009, via an acquisition of 100% of the senior debt and 85% of the economic interest in the Formit Services Group.
Formit Services Group was established in 2007 through the acquisition of several businesses including Formit, OzPoly and BVCI to create a diversified manufacturer of plastic and precast concrete products. It currently has c. 120 employees across QLD, NSW and VIC, and turnover of $45m.
The investment opportunity has a number of elements that lend themselves to both strong value creation as well as downside protection:The business was acquired at an attractive price.

• Post initial restructuring, the business is generating positive cash flows and profits with significant sector and business restructuring and operational improvement opportunities remaining.
• There is an opportunity to create considerable value via acquisitions to build critical mass, obtain synergies and reduce pricing pressure in the market.
• The transaction structure involved an assignment of the senior debt providing a supporting security position.
• The portable toilet and infrastructure divisions hold strong positions in their respective industries.