PaperLinX to Acquire Canterbury Packaging

PaperlinX, Australia, has agreed to acquire the business and assets of Canterbury Packaging Ltd., Christchurch, New Zealand. The acquisition is expected to be completed on October 1. Canterbury Packaging is a small distributor of industrial packaging consumables, hygiene, safety, and hospitality products to customers predominantly in the Christchurch area. It has annual revenues of A$ 2.9 million and is profitable.

Canterbury Packaging will be combined with PaperlinX's existing A$95 million Spicers business in New Zealand, and the purchase consideration of A$2 million will be funded from local credit facilities available within Spicers.

Andy Preece, executive GM, ANZA Region, said that "the acquisition of Canterbury Packaging is a small but significant further step in our Diversified Products strategy. 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. The additional packaging consumables will build on the existing strong market position of our profitable Spicers business in New Zealand."

TAPPI
http://www.tappi.org/