Private equity involvement and support doesn’t necessarily end with a liquidity event. After supporting Walter Mining (WM) and Diversified Construction (DCC) to develop clear strategic and business plans, making five strategic acquisitions and supporting the capital expenditure requirements, Helmsman negotiated the merger of WM and DCC to form WDS Limited. WDS was publicly listed during December 2006, providing a high value exit for HCF and wealth generation for the management shareholders.
After the float, HCF retained a 15% shareholding in WDS with Helmsman managing director, Ian Johnson, becoming a director of WDS and chairing the WDS Corporate Strategy and Business Development Committee until April 2008. WDS has continued to grow both through strategic acquisitions in drilling, engineering and coal seam gas processing and organically with Revenue forecast to increase by 25% and NPAT by 40% to $285m and $17.5m respectively on the prior comparable period as a listed company. HCF has sold down its interest to 3% continuing to generate very good returns from this investment in a volatile equity market.