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.