Happy New Year and welcome to 2019.
In this age of uncertain Presidential behaviour it’s
worth observing that 76 years ago on this day in 1943, the first ever flight on
US Presidential business landed. A significant, risky 4 day event which enabled
Franklin D. Roosevelt to meet a cautious Winston Churchill and foot dragging
Charles DeGaulle in Casablanca. (Stalin declined to come, blaming the ongoing
seige of Stalingrad).
The TWA Boeing 314 flying boat departed Miami via Trinidad (now independent) via Brazil and Gambia (now a republic). The final leg used a Douglas C-54 (military version of a DC-4) 4-propeller aircraft to land at the French Protectorate of Morocco (now a Kingdom).
Three generations later the change in technology and
geopolitics is scarcely believable. Thus we remain optimistic of continued
positive change, the trend is our friend.
“Lincoln, like many leaders, didn’t blaze onto the
larger stage at a young age. And even when he began to build a legal and
political career, his path was marked by as many failures as successes.”
– Nancy Koehn of Harvard Business School, reflecting recently
on 16th US President, Abraham Lincoln.
At this time of year we often weigh the balance of our
own failures and successes as summer tides ebb and flow. Koehn’s 11 page
article is an excellent holiday reflection – email if you would like a copy.
“We should not lose sight of the fact that our economy, and our society, works best when there are high levels of trust”
– Wagga Wagga born, Australian Reserve Bank Governor Philip Lowe in a speech last month; almost begging Governments not to over regulate but be genuine leaders
It’s not often we get to celebrate success in public alongside customers. So it’s satisfying to share the announcement that specialty minerals producer ACG Materials of Norman Oklahoma was recently bought by Arcosa Inc of Dallas TX to become a part of their construction products division.
The role of KBP over several years included helping prioritise proposed capital investments and objectively challenging management’s strategic planning goals. This helped set stretch (but realistic) targets and create an attractive business, justifying a high exit multiple for the owners.
Deal metrics were sale price of USD315M; at a trailing EBITDA multiple of 9.8x.
Well done to Paul (a Christchurch expat) and the team.