Graeme Hart
Graeme Hart | |
|---|---|
| Born | 1955 New Zealand |
| Occupation(s) | Entrepreneur, businessman |
| Known for | Private equity investments, leveraged buyouts; ownership of Rank Group, Carter Holt Harvey, Reynolds Packaging Group |
Graeme Richard Hart (born 1955) is a billionaire entrepreneur from New Zealand and ranks among the nation's wealthiest figures. By June 2024, his net worth was valued at NZD$12.1 billion, marking him as the first New Zealander to exceed NZD$10 billion in personal wealth.
Hart employs a private equity approach centered on leveraged buyouts (LBOs), targeting underperforming firms with consistent cash flows. He enhances these companies by implementing rigorous cash flow management, reducing costs, and restructuring operations. Since acquiring Carter Holt Harvey in 2006, his focus has shifted predominantly to the paper packaging industry. His largest acquisition was the 2008 purchase of Alcoa’s Packaging & Consumer division for US$2.7 billion, which was subsequently rebranded as Reynolds Packaging Group. Hart’s role is mainly concentrated on financing and recapitalization activities rather than day-to-day management.
In March 2022, Forbes placed him at number 274 on its list of the world’s wealthiest individuals. That year, he was also inducted into the New Zealand Business Hall of Fame.
Early years
Hart, the son of a radiographer, attended Mount Roskill Grammar School in Auckland. He left formal education at age 15 and initially worked as a tow-truck driver and panel beater before starting his first enterprise at 18 with financial support from his father.
He earned an MBA from the University of Otago in 1987, where his thesis proposed a growth strategy for Rank Group Limited—a modest party hire business in Auckland—through a series of acquisitions.
Hart’s significant breakthrough occurred in 1990 when he acquired the Government Printing Office at below market value with advantageous payment terms, despite initial government reluctance. The following year, he purchased Whitcoulls Group, which within two years controlled 40% of New Zealand’s book and stationery market. These holdings have since been sold.
Rank Group
Rank Group Ltd serves as Hart’s private investment vehicle. It was the sole proprietor of Reynolds Consumer Products until its IPO in 2020 and also owns companies such as Burns Philp and Carter Holt Harvey. In 2004, after divesting Burns Philp assets and listing Goodman Fielder, Rank held roughly NZ$3 billion in cash reserves.
In December 2006, Rank purchased Evergreen Packaging—International Paper’s drinks packaging division—for NZ$725 million. In May 2007, it acquired Swiss packaging firm SIG for NZ$3.2 billion; SIG’s Combibloc business ranks as the world’s second-largest manufacturer of food and beverage carton packaging after Tetra Laval. By August 2007, Hart completed a US$450 million acquisition of Blue Ridge Paper Products (based in North Carolina), which he merged with Evergreen Packaging. These transactions elevated Rank Group to become the world’s second-largest paper products company.
In March 2015, Reynolds Group Holdings divested SIG to Onex Corporation.
Hart’s corporate jet is a Gulfstream G700, bearing the registration N71Z.
Burns Philp
Burns Philp and Company Limited was a food manufacturing company operating in Australia and New Zealand, listed on both ASX and NZX. Hart joined its board in 1997 and served as chairman from September 2004. In 2003, Burns Philp conducted a hostile takeover valued at A$2.4 billion of Goodman Fielder before relisting it through an IPO.
Following the sale of its yeast and spices division to UK-based Associated British Foods, Uncle Toby's to Nestlé for NZ$1.1 billion, and Bluebird Foods to PepsiCo for NZ$245 million, Burns Philp had effectively become a cash-rich shell company.
In December 2006, Hart acquired the remaining 42% stake in Burns Philp he did not own for AU$1.6 billion, resulting in its removal from both ASX and NZX listings. This acquisition gave him full control over A$2.9 billion in Burns Philp cash (after debt), which he invested into expanding his Carter Holt Harvey holdings.
In October 2007, Hart sold Burns Philp’s 20% interest in Goodman Fielder for NZ$675.8 million.
Carter Holt Harvey
In 2006, Hart purchased Carter Holt Harvey (CHH), a timber and paper company based in New Zealand, for NZ$3.3 billion. He undertook a major restructuring of the underperforming firm by divesting CHH's forest assets to the US-based Hancock Timber Group for nearly NZ$2 billion, alongside selling its headquarters, sawmills, and packaging facilities for over NZ$300 million.
By 2007, Hart revealed intentions to sell CHH's building supplies division, which was valued at up to NZ$2.3 billion; however, this sale did not materialize. Starting in 2010, he also explored potential buyers for the packaging segment of CHH. In April 2014, the Pulp, Paper & Packaging division of CHH was sold to a Japanese consortium for NZ$1.037 billion.
As of 2021, CHH held close to 50% of New Zealand’s structural timber market share.
Reynolds Packaging Group
Hart acquired Alcoa’s Packaging & Consumer group in 2008 for US$2.7 billion, subsequently renaming it Reynolds Packaging Group with its headquarters located in Lake Forest, Illinois. This enterprise primarily specializes in aluminium foil and plastic closures rather than paper-based packaging. Following the acquisition, Hart implemented workforce reductions exceeding 20%, including the shutdown of the Reynolds Wrap Foil Plant in Richmond, Virginia, resulting in substantial cost reductions and enhanced profitability.
Between November 2009 and May 2010, Hart unified his packaging operations under Reynolds Group Holdings Limited (RGHL), which was organized into four divisions: SIG (beverage packaging headquartered in Zurich), Closure Systems International (plastic caps based in Indianapolis), Evergreen Packaging (beverage packaging in Memphis), and Reynolds Consumer Products (aluminium foil located in Lake Forest). RGHL’s corporate office remains in Lake Forest.
On 17 June 2011, RGHL declared its intention to acquire Graham Packaging Company for approximately US$4.5 billion; the transaction concluded on 8 September 2011 with a cash offer of $25.50 per share. This acquisition significantly expanded Hart’s footprint within the US market. Earlier that year, RGHL also purchased Honeywell International’s automotive consumer segment (the FRAM group) for US$950 million.
In March 2015, Reynolds Group Holdings finalized the sale of SIG to Onex Corporation.
Walter & Wild
Since 2018, Hart together with his son Harry have held majority ownership of Walter & Wild, a holding company dedicated to New Zealand food brands including Alfa One, Aunt Betty's, Greggs, Hansells, Hubbard Foods, Thriftee, Teza, and Vitafresh.
Personal life
Graeme Hart possesses several residences across New Zealand—in Auckland, Queenstown, and Waiheke Island—as well as an island property in Fiji and two estates in Aspen, Colorado. He considers his amassed wealth as a secondary outcome of his business ventures rather than an end goal.
Although generally maintaining a private profile, Hart attracted public interest with the 2006 debut of his $100 million luxury yacht Ulysses in Auckland. The vessel required five years to complete due to a fire incident during refurbishment. By 2012, it was put on the market with an asking price of $49 million.
He commissioned a new expedition yacht measuring 107 meters at Kleven Verft shipyard in Norway; it features a helicopter pad and hangar along with accommodation capacity for up to 60 guests. This yacht—initially named Ulysses and launched in 2014—was succeeded by a larger 116-meter explorer yacht bearing the same name in 2017.
In December 2018, the Hart Family contributed $10 million towards the University of Otago’s $28.2 million dental teaching facility located in South Auckland.
Following the Hunga Tonga–Hunga Ha'apai volcanic eruption and tsunami in 2022, Hart donated eight tractors, thirty fishing vessels, and food supplies to aid Tonga’s recovery efforts.
Politics
Hart provided financial support exceeding NZ$58,000 to Wayne Brown's mayoral bid during the 2022 local elections. Additionally, he has made contributions to both the New Zealand First and ACT political parties. In the course of the 2023 general election, Hart, together with his enterprise Rank Group Limited, donated a combined sum of NZ$700,000 to parties positioned on the centre-right and right of the political spectrum: NZ$400,000 went to National, NZ$200,000 to ACT, and NZ$100,000 to New Zealand First.