PaperlinX Limited
(ASX:PPX) says its New Zealand business Spicers has acquired 100 per cent of Total Supply Limited, a leading sign industry supplier in New Zealand.
The acquisition will be fully funded from existing local facilities and is expected to be earnings accretive in the first year with 20 per cent return on capital.
PaperlinX General Manager Andy Preece says the deal is a strategic priority for the Australian and New Zealand business and it provides opportunity for rapid and significant growth with Total able to leverage Spicers comprehensive footprint and infrastructure.
The paper merchant has been struggling of late with soft conditions in its global core paper markets. The company is refining its business model and concentrating on diversifying.
PaperlinX reported a net loss of $63.6 million for the full year ended 30th June, 2014.
