Investment giant takes stake in Qld's Ostwald Bros
DARLING Downs-based construction firm Ostwald Bros has attracted the purse of one of Australia's biggest fund managers Queensland Investment Corporation.
QIC's Private Equity team announced a minority equity stake in the quarry and concrete solutions arm of the company.
Ostwald Bros CEO Brendan Ostwald said the deal into the quarry and concrete business would provide the privately owned resource services contractor equity to reinvest into the company's future growth.
"This equity injection is a game changer for the Ostwald Bros Group," he said.
"The funds will facilitate the continued expansion of the company. Much of our work revolves around the Surat Basin so we anticipate this deal will have a direct impact on jobs and opportunities for regional Queensland.
"QIC's investment proves there's confidence in Queensland-based businesses and in the state's infrastructure and resources sector moving forward.
"Regional Queensland is an exciting place to do business right now and this deal shows our continued commitment to our region.
"We've chosen to work with QIC for its proven track record to deliver successful long term investment outcomes with a unique local touch."
QIC principal Phillip Cummins said there were growing quality investment opportunities within the current Australian private equity market with companies such as the Ostwald Bros Group leading the charge.
"QIC's long-term investment was based on the strength of OCM and the continuing expansion of Queensland's regional economies," Mr Cummins said.
"The Ostwald Bros Group's local knowledge and hands-on approach will deliver significant cost effectiveness in the long run.
"QIC is interested in investing in private companies with exceptional founders and experienced management teams. We prefer to inject capital into an organisation knowing they've got the right expertise to grow and develop the business.
"We don't need to have a controlling position or majority stake."