Colorpak completes Carter Holt Harvey takeover

Australian packaging company Colorpak (ASX: CKL) has moved into the No.1 market position after completing the formal acquisition of the folding carton operations of Carter Holt Harvey (CHH) today.

Key figures:

• Colorpak has acquired four additional carton manufacturing plants in Australia and NZ
• Market share prior to CHH acquisition: 11.2%
• Market share upon CHH acquisition: 31%
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Colorpak Managing Director, Alex Commins, said integrating CHH’s operations would significantly expand its business within the folding carton sector in Australia and New Zealand.

“The integration of CHH’s operations into the Colorpak business gives us the platform to build our market leadership in this sector.

“Colorpak has gone from strength to strength since floating in 2004, acquiring and integrating five businesses over the past 12 years and staying true to its vision to be the creators of the most outstanding packaging in Australia,” Mr Commins said.

Completing the formal acquisition requirements, Colorpak said each of the Conditions Precedent to the acquisition of CHH’s folding carton operations have now been satisfied.

Colorpak has paid $5 million for the CHH folding carton assets in Australia and New Zealand, excluding the Smithfield site in NSW. The combined sales for the year ending June 2012 – the first full year after the acquisition – are expected to be in the vicinity of $210 million.