New York private equity firm Castle Harlan said its Champ affiliate in Australia sold a disposable diaper maker for around $58 million. Champ -- short for Castle Harlan Australian Mezzanine Partners—sold its Australian Pacific Paper Products operation for 75 million Australian dollars to Gresham Private Equity of Australia, the company has reported. Champ bought Austrialian Pacific Paper in in December 2002 for around $41 million, and recouped 80% of its original investment in a May 2004 recapitalization. Champ's gain from the sale and recapitalization totaled $41 million, representing an internal rate of return of 56%, the firm said.
Austrialian Pacific Paper makes diapers and adult incontinence products for the Australian and New Zealand markets. Its 2004 revenue was A$104 million and earnings before interest, taxes, depreciation and amortization were A$13 million.