The Kula Fund II managed by Pacific Capital Partners, a subsidiary of Aureos Capital, has acquired at 16.5 per cent stake in KK Kingston, a manufacturer and a supplier of industrial products in Papua New Guinea.
Kula introduced International Finance Corporation as a co-investor and together they hold a 33 per cent stake in KKK.
Aureos Capital is a private equity fund management company specialising in investing in small and medium businesses in emerging markets.
KKK employs over 500 people. It is involved in the manufacturing of industrial goods including cleaning chemicals, bleach, hand towels, domestic usage containers and septic tanks.
Andrew Crompton, partner at Aureos Capital, says: “Following a sustained period of growth, KKK is well placed to participate in the growth expected in Papua New Guinea over the next five years. The company has established a very strong reputation for sound business practices, quality products and excellent customer service.”
Michael Kingston, director and general manager of KKK, says: “We are delighted to have secured this partnership with Aureos and IFC. KKK is currently in good shape, and the financial input from Aureos and IFC will add further impetus to our growth plans.”
Kula’s investment will support the opening of a new retail site, an increased capital expenditure programme and working capital to capitalise on new business opportunities as they arise.
