Australian PaperlinX buys Canterbury Packaging

Leading Australian paper products distributor PaperlinX has bought Canterbury Packaging for A$2 million (NZ$2.58m).

PaperlinX is a large international player with most of its sales in Europe. Its businesses source, market and distribute paper, sign and display, graphics material and industrial packaging materials.

PaperlinX announced today had entered into an agreement to acquire the business and assets of Canterbury Packaging, based in Christchurch, the Australian company told the ASX

''Canterbury Packaging, a small distributor of industrial packaging consumables, hygiene, safety and hospitality products to customers predominantly in the Christchurch area, has annual revenues of A$ 2.9m and is profitable," PaperlinX said.

Canterbury Packaging would be combined with subsidiary Spicers business in New Zealand and the purchase price would be funded from local credit facilities available within Spicers, PaperlinX said.

Andy Preece, executive general manager of the Australian and New Zealand region, said buying Canterbury Packaging was a small but significant further step in PaperlinX' diversified products strategy.

The additional packaging businesses would build on the strong market position of Spicers. The acquisition was expected to be completed on October 1.

- © Fairfax NZ News