Published 8 November 2006
The Russell family has called in Goldman Sachs JB Were’s private equity arm to grow construction services company Dominion Constructors Ltd.
The family will own 44% of a new holding company, with Goldman Sachs J B Were’s Hauraki Private Equity No 2 Fund Ltd taking a majority position. The deal is subject to finalisation of funding.
Dominion Constructors’ current joint managing directors, father & son Alf & Brett Russell, will continue to lead the company along with their existing management team.
Brett Russell said the new partnership would help the company achieve its strategic objectives: “Goldman Sachs JB Were will bring the additional professional skills to the business that are needed for the company’s next phase of development.”
He said the family considered a number of strategic options but decided private equity best suited their desire to build on Dominion Constructors’ current success, retain its strong company culture and grow its positive relationships within the construction industry.
“Our strategy continues to be to strengthen our current market position and develop our current operations â€“ but to remain very clearly operating in the current tier of the industry in which we operate. We are not looking to grow to the size of the bigger market players â€“ but instead we are aiming to continue to support them in the manner that we currently do.”
Formed in 1973, Dominion Constructors has grown into a leading provider of construction services, with one of the largest labour forces in the industry. The firm builds apartments, civil engineering projects, retail, industrial & institutional projects.
The new holding company will own both Dominion Constructors & Goldman Sachs’ existing scaffolding business Acrow Ltd, bought in 2005. While this could offer some synergies, Mr Russell said Dominion Constructors & Acrow would continue to be run independently.
It supplies services to customers such as Mainfreight and the Giltrap Group, and to construction firms like Fletcher Construction, Multiplex & Mainzeal in the major development market.
Dominion Constructors’ sister company, Russell Bricklayers & Aotea Paving, was not part of the deal and will remain an independent firm.
Other recent investments by the Goldman Sachs private equity firm include Kathmandu Ltd & Hirepool Ltd.
Attribution: Company statement, story written by Bob Dey for this website.