Kaizen Global Investments Limited (NSX:KGI) Investment in Hair Care Industry

Sydney, July 1, 2022 AEST (ABN Newswire) - Kaizen Global Investments Limited (NSX:KGI) is pleased to announce an investment in General Pacific Partners Pty Ltd ("GPP"), a newly formed company created to facilitate the asset purchase of a private hair care business.

The business is a colour and hair care company, which has provided quality products to the hairdressing industry in Australia, New Zealand and the Asia-Pacific region for over 25 years.

KGI has an investment of $2.3m in GPP, which owns 100% of the assets of the business. This gives KGI an initial investment of 33% with an option to increase that percentage to 40% over the next 12 months.

KGI expects the EBITDA contribution per share at the initial ~33% investment level to be in the region of 15-17 cents per share per annum. Subject to the business' future realised earnings, the Board aims to consider paying out most of the earnings from this investment as a fully franked dividend to KGI shareholders. Please note that this is not forward guidance, nor should it be relied upon in making any investment decisions.

We're excited to own a strong brand in the professional hair care industry in Australia with a focus on delivering high quality products to clients, providing ongoing education and high service levels.

It has been a busy 7 months for KGI with the successful sale of its medi-aesthetic business and redeployment of the capital into GPP. The sale of the medi-aesthetic business related more to consolidation in the industry and a view that this could negatively impact the earnings of that business. We are still very interested in the medi-aesthetic industry, and see opportunities within a growing thematic.

The Board intends, within KGI's private investment mandate, to continue to 'collect' companies and reallocate their generated cash flows into other investments - both listed and unlisted - to optimise compounding assets and earnings per share.