Following six months of protracted negotiations over the future of the business, Sun European Partners – the European wing of USA private equity business Sun Capital Partners – sealed the deal to take ownership of Polestar UK Print last Friday (15 April), in a move that also jettisoned the remaining £35m of a £45m liability owed to the company’s pension scheme.
Polestar chief executive Barry Hibbert said the new ownership structure would allow the business to participate in the next wave of industry consolidation, which he predicted would happen "at a rapid rate".
"Sun has been instrumental in the consolidation of the packaging industry and I don't think it's passed them by that commercial printing is in a similar situation," Hibbert stated.
Last week Sun acquired flexible packaging specialist Britton Group.
Hibbert admitted that Polestar had already missed out on a potential buy in the shape of the St Ives magazine business acquired by Walstead Investments. "I'm pleased consolidation is taking place because it's needed, but I wasn't best pleased that the St Ives deal went elsewhere," he said.
He was noncommittal about industry speculation that Polestar was poised to make a takeover approach for BGP. "BGP is an independent company and they have to decide how they want to proceed. We will be looking on a European basis not just here in the UK," he said. "And it's not just about acquisitions, we are looking at organic growth as well. Gravure is growing organically and will continue to grow."
Unite national officer Steve Sibbald said the change of ownership at Polestar didn't make much difference to the union. "Their financial backers have been so varied over the years. We're due to have a meeting with the company in the next few days and we'll learn more about the pension aspect then. We keep a very close eye on all of it."
- PrintWeek can also reveal that Polestar has resigned its membership of the BPIF. The group had been the federation's single biggest member company. BPIF chief executive Michael Johnson said he did not believe the resignation was a pre-emptive move, designed to head off any potential issues due to Polestar's change of ownership involving some form of pre-pack mechanism. "They resigned three months ago. Barry's commitment was to me, and it's up to [incoming chief executive] Kathy and her team to renegotiate with them," Johnson said.
Polestar: a potted history
1998: Polestar formed by Investcorp-backed £810m merger of BPC and Watmoughs. Executive director Barry Hibbert leaves the business at the end of the year
2000: Chief exec Tony Rudston quits
2001: Chief exec Jim Brown quits, Barry Hibbert returns to the group as CEO
2006: Investors take £700m hit as finances are restructured
2008: Further debt-for-equity swap
2011: Sold to Sun European Partners
