Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Cadmus Consolidates Manufacturing

Cadmus Consolidates Manufacturing

Payment solutions company, Cadmus Technology Limited (NZX: CTL) is to buy the remaining shares it does not own in JV manufacturing company Production Manufacturing Ltd for $25,000 cash and the issue of 3,017,778 Cadmus ordinary shares.

Production Manufacturing Limited was formed in 2003 and provides manufacturing services solely for Cadmus.

The move enables Cadmus to gain total control over its present manufacturing requirements as well as ongoing improvement and management of production costs and scheduling.

This acquisition provides the platform for Cadmus to expand its production to meet an expected increase in demand over the next 12 - 36 months as the requirement for EMV compliant terminals become mandatory. The deal will also enable Cadmus to obtain further potential cost savings in using larger international contract manufacturers when required.

Cadmus Managing Director Ian Bailey says the agreement to purchase is conditional on completion of due diligence by Cadmus.

“This transaction complements our focus on taking more control of end to end product design, development, production and delivery in a vertical integration of the business functions. We are expecting an increase in volume with the changeover to DES 3 and EMV compliant terminals and bringing production into line will provide us with control needed to meet the expected demand.”

The company continues to work on a number of international opportunities and appropriate acquisitions. Further announcements will be made as these are finalised.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>