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ive to boost turnover to $355.7 million

Wednesday, 03 June 2015
By Print21

Strategic corporate acquisitions over the past couple of years in marketing communications and mailing have helped grow the former Blue Star Group – now rebranded as ive Group – into a corporate behemoth valued at between $261 million and $290  million ahead of a prospective sharemarket bid.

ive Group chairman Geoff Selig and other senior executives met with fund managers in Sydney ahead of the  proposed ASX float next month, which is gearing up to be the largest stock market play in the printing  industry.

Prospective investors were told that the company is forecasting revenue of $355.7 million and net profit of $19 million in fiscal year 2016.  The meeting heard that Bell Potter analysts have valued the company at between $261 million and $290 million on an enterprise value basis.

The newly-minted print and marketing services company is planning to issue about 50 million new shares as part of the initial public offering, according to a report in the Australian Financial Review.

ive will hold an institutional bookbuild on June 11 and lodge a prospectus the next day. The group now plans to debut as a public company on July 6, after earlier reports suggested the float would take place on July 1. Bell Potter Securities and Evans and Partners are assisting on the deal, which has been the subject of widespread industry rumour for some time.

Current owners Wolseley Private Equity and the Selig family will reportedly retain about 45 percent once the business is listed – subject to escrow considerations. Selig partnered with Wolseley to buy Blue Star’s Australian operations in 2012.

Other ive directors include managing director Warwick Hay, Wolseley’s James Todd, Paul Selig, former Seven Group executive Andrew Harrison, former Seven Group executive Andrew Harrison, former Herbert Smith Freehills boss Gavin Bell and former Telstra executive Deena Shiff.

Sydney-based Blue Star launched an aggressive acquisition strategy over the past year before rebranding in April as ive Group. It consists of three operating divisions – Blue Star Group (which includes Blue Star Print, Blue Star Web, Blue Star Display, Blue Star Direct, Blue Star Connect and Blue Star Promote), Iveo (managed solutions) and Kalido (creative and marketing services).

ive has shut down public comment ahead of the planned float. Selig has been unavailable for comment and Blue Star CEO Matt Aitken said there would be no comment “at this time.”

 

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