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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.

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