A $NZ520m-plus buyout of The Warehouse by Sydney-based Adamantem Capital Partners may be off the table for now, but if it is resurrected, a familiar name could surface as one of the faces behind the venture.
DataRoom understands that the former boss of Metcash, Ian Morrice, has been tapped to run the New Zealand discount department store chain should it fall under the private equity firm’s control.
Morrice ran Metcash from 2012 to 2018. He is now based in Auckland, working as an adviser to private equity.
Adamantem, comprising former executives from Pacific Equity Partners, has partnered with the founder and major shareholder of The Warehouse, Stephen Tindall, to privatise the discount department store.
The partnership was offering between $NZ1.50 and $NZ1.70 per share, but The Warehouse rejected the offer in early August after a key shareholder considered the bid to be too low. This would prevent a vote succeeding, with 75 per cent support needed.
The Warehouse’s largest shareholder is James Pascoe Ltd with 19.9 per cent. It owns well-known New Zealand retailers including jeweller Pascoes, department store Farmers, homeware retailer Stevens and bookshop Whitcoulls.
It is understood that the strategy of Adamantem and Mr Tindall is to transform The Warehouse into a third major grocery chain in New Zealand to compete with Woolworths and Foodstuffs.
Observers believe the project would probably take five to seven years to execute.
Factors to be considered include what product offerings The Warehouse opts to reduce to make way for groceries, and whether frozen food will be part of the mix – along with chilled storage and distribution requirements.
The operating model could be like Trader Joe’s, a chain of 571 stores across the US that sell healthy, affordable, private label food. It is owned by the family of one of the Aldi founders, Theo Albrecht. However, one observer said that the success of a food offering at The Warehouse would come down to execution.
Jarden deal-makers sharpen their focus on lifting share
This year expect more Australian corporations to reshape their portfolios and private equity to consider floats as an investment exit option, says Jarden Group.
Debt capital markets proceeds up
Debt capital markets proceeds for Australia increased more than 16 per cent in 2024 compared to the previous year as corporates became more confident that inflation was being reined in.