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

 

ASX-listed PaperlinX buys Canterbury Packaging for A$2M

ASX-listed PaperlinX buys Canterbury Packaging for A$2M

By Paul McBeth

Aug. 6 (BusinessDesk) - ASX-listed PaperlinX will spend A$2 million expanding its New Zealand operations by acquiring Canterbury Packaging, a fortnight after signalling its intention to quit Eastern Europe and South Africa.

The Scoresby, Victoria-based paper merchant and distributer will bundle the new acquisition into its existing New Zealand Spicers business, adding annual revenue of A$2.9 million, it said in a statement.

The deal is expected to be completed by October, and will be funded through local credit facilities within Spicers. Canterbury Packaging distributes industrial packaging, consumables, hygiene, safety and hospitality products, primarily in Christchurch.

"This acquisition will provide a building block for Spicers New Zealand to diversify and leverage our existing footprint and infrastructure to build a national business with the expertise from Canterbury Packaging," said Andy Preece, executive general manager for Australia, New Zealand and Asia.

"The additional packaging consumables will build on the existing strong market position of our profitable Spicers business in New Zealand," he said.

PaperlinX's New Zealand unit reported a profit of $4.5 million on sales of $123.4 million in the year ended June 30, 2011, according to financial statements lodged with the Companies Office.

The Australian parent has been restructuring its business, warning shareholders it faced an annual loss of A$171 million in the year ended June 30 on tough trading conditions and write-downs.

Last month it announced the sale of operations in Slovakia, Hungary, Slovenia, Croatia, Serbia and South Africa, on top of earlier moves to divest its Italian and US businesses.

PaperlinX's chief executive Toby Marchant stepped down after the radical overhaul was unveiled.

The shares were unchanged at 6.2 Australian cents on the ASX on Friday, having shed 26 percent this year. The stock is rated an average 'hold' according to five analysts' recommendations compiled by Reuters, with a median target price of 8 cents per share.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Air New Zealand: Flying Year-round To Popular Queensland Destinations

Air New Zealand is moving to year-round direct flights on its Auckland-Cairns, Auckland-Sunshine Coast and Christchurch-Gold Coast routes under an agreement with the Queensland Government... More>>




SEA: Another First For Solar Energy In New Zealand

The Sustainable Energy Association NZ (SEANZ) congratulates Sunergise on the commissioning of the Sunergise Kapuni Solar Power Plant, the largest in the country... More>>

Accenture: More Boomers Than Zoomers Want To Work From Home

While often associated with tech savvy Gen Z or Zoomers, new global research from Accenture shows that the push for more flexible working environments is being led by Gen Xers and Baby Boomers... More>>

Banking: Westpac New Zealand To Remain Part Of Westpac Group

Westpac New Zealand Limited (WNZL) remains part of Westpac Group following a decision for the two businesses not to demerge. Westpac Group Chief Executive Officer, Peter King, said: “After a detailed review, we believe a demerger of the WNZL business would not be in the best interests of shareholders... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>

ALSO:


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>