Colorpak signs agreement to acquire folding carton business

Australian packaging company Colorpak has signed a heads of agreement to acquire the folding carton operations of Carter Holt Harvey.

Colorpak Managing Director Alex Commins said integrating with CHH’s folding carton operations would see Colorpak significantly grow its business within the folding cartons sector in Australia and New Zealand.

CHH is a folding carton board business in Australia and New Zealand with five plants and 658 employees. Colorpak will acquire all CHH’s folding carton operating assets and will assume all operating liabilities including plant and equipment, working capital and all employee entitlements, for a net consideration of AU$5 million.

“The synergies between our operations and those of CHH are obvious and will enable us to service clients with a fuller product and service offering,” Commins said.

“The speed, flexibility and ‘can-do’ culture of Colorpak, which has been the most consistently rated no.1 folding carton supplier for reliable delivery and service, combined with the scale of the CHH business, will drive solid growth for Colorpak and deliver even greater value for our shareholders over the long term.

“Our company 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.

“Colorpak has long indicated a desire to be a catalyst for change within the industry. This is a unique opportunity in the company’s history to take a leading role in our industry.”

The acquisition will be managed by the establishment of a dedicated integration team, led by Colorpak Operations Director Paul Commins, as well as a Board subcommittee and the transaction is expected to be earnings-per-share accretive in the first full year following acquisition, on a normalised basis.