BOSI has sold a whole portfolio of distressed loans to KKR to the value of $350m, including Geon’s, which is thought to be the largest. BOSI put them up for sale when it decided to exit the Australian corporate lending market. The purchaser is New York based global investment firm, KKR & Co. LP (KKR), who have partnered with a Australian investment firm, Allegro Funds, for this deal.

KKR has also just bought digital offset press manufacturer Presstek.

Graham Morgan, CEO, Geon says, “KKR is renowned as a firm which invests for growth in their investments and we look forward to forging strong relationships with KKR as a key stakeholder in our business. This a good news story for Geon and for our industry.”

Morgan declined to comment further. Geon is owned by private equity company Gresham, and like rival Blue Star has been struggling to adapt to a printing industry which changed dramatically following the GFC and  rapid take up of the internet.

Geon is currently in talks with employees about reducing labour costs, with Morgan hopeful that the two sides can come to a common agreement. One of Geon’s senior managers, Roger Kirwan, the national manager of operations for the eastern seaboard has announced he will leave by Christmas.

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