Australia-based packaging company Colorpak has signed a heads of agreement to acquire the folding carton operations of Carter Holt Harvey thereby enhancing its market position.
Colorpak managing director Alex Commins said that 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 deals in folding carton board businesses in Australia and New Zealand with five plants. 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 $A5m ($4.93).
The acquisition will be managed by the establishment of an integration team, led by Colorpak operations director, Paul Commins, as well as a board sub-committee and the transaction is expected to be earnings-per-share accretive in the first full year following acquisition, on a normalised basis.