R. Jones buys into puzzle company

Press, 12 June 1984, Page 32

R. Jones buys into puzzle company

Robert Jones Investments, Ltd, says it has purchased, for an undisclosed cash sum, a 50 per cent interest in the Aucklandbased IQ Group of Companies. IQ was set up in 1978 to manufacture puzzles and games. It has since become a major importer and exporter of leisure and sports products. Robert Jones’ deputychairman, Mr Denis Thom, said yesterday the company had “identified and invested in a company with an outstanding future.” IQ was poised for a significant growth in sales and profitability in New Zealand and overseas. “The injection of equity capital will allow the IQ Group to pursue its planned export expansion,” Mr Thom said. IQ says it has growing

markets in Australia, Japan, North America, Europe and Singapore. It has controlling equity investment in the European and Australian distributors. The company has also recently contracted for the sole marketing rights in Australasia and Europe for the extensive new squash, tennis and badminton racquet range of Fin products. Mr Thom said that Robert Jones was pleased to support a “rapid growth exporting company.” IQ budgeted for export sales of $2 million to the year ended March, 1985. The IQ board will be restructured to include three Robert Jones Investments nominees: Sir Michael Fowler, who will now be chairman of the IQ Group; Mr Denis Thom, the Robert Jones deputy chair-

man; and an Auckland chartered accountant, Mr Richard Commons. They will join the present three directors: Messrs Rod Smith, Tom McNamara and Roy Austin. These three control the remaining 50 per cent of the capital of the group. Robert Jones’ chairman, Mr Bob Jones, said the purchase was made after an extensive market investigation over six months. "IQ is our first such diversification investment made after considering more than fifteen other propositions,” he said. His company would continue to work for non-property investment options, “but always with the proviso of maximum scrutiny in respect of their future market potential and management skills.”