Spicers Sells Asian Business to Japan Pulp & Paper
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According to an Oct. 3, 2018 report by Print 21 (Australia), Japan Pulp & Paper will pay Spicers approximately SGD$15 million for the business – which is focused in Malaysia and Singapore – and Spicers (Santa Fe Springs, Cali., USA) will also keep the estimated SGD$7 million in net cash currently held, and will receive the net proceeds of the sale of the Singapore property.
The Asian operations contributed some $2.2 million to Spicers underlying EBIT in FY2018.
The sale of Asia represents the complete exit of Spicers from its ambitious overseas expansion plans, which saw the business lose hundreds of millions of dollars in Europe under its former PaperlinX entity. Spicers will now focus on the markets of Australia and New Zealand.
"I want to thank our team in Asia for their ongoing focus and professionalism in effectively executing on their strategies, and delivering strong results for the business. I wish them well for an exciting future as part of JP’s expanding Asian business upon completion of the transaction.
"The focus for our Australian and New Zealand businesses will be to continue to deliver on our promises. We have a strong business, , with great people, and there are many opportunities for us to further optimise our positions and maximise returns in our chosen market segments," said Spicers CEO David Martin.
