Tristar Concrete and Quarries

  • Following the sale of Elders Resources to Carter Holt Harvey, Kevin Maloney saw an investment opportunity in the services sector supplying the building, construction and mining industries with concrete and a quarry operation in the fast-growing Queensland city of Townsville.
  • The ready mix concrete batching industry in Townsville was made up of three major national operators. Due to their relative size the three national operators dominated the market.
  • Kevin established Tristar to start his entry into the quarry and concrete batching plant market in Townsville in 1991 and take on the three major players.
  • The business plan was to quietly gain market share until the company had achieved critical mass.
  • Within two years Tristar’s market share for the region had grown to 15% and one of the majors acquired the business for approximately A$2 million in 1993.
  • Kevin Maloney invested A$100,000 in 1991.
  • Mr Maloney exited Tristar in 1993 when he received A$2.0m for his interest.
  • Kevin exited in 1993 via the sale to a strategic buyer yielding 20x his initial investment.
  • Achieved an IRR(1) of 346%.
Source: Tulla Resources management.  
(1) Assumes purchase and exit occur January 1 of respective years.