The acquisition will be fully funded from existing local facilities and is expected to be earnings accretive in the first year with 20% return on capital. In addition, there is a potential earn out payable over 24 months subject to certain financial hurdles being met in relation to the performance of the business.
Completion is expected to occur on 1st October 2014; thereafter the business, consisting of approximately 20 employees, will operate as a wholly owned subsidiary of the Spicers business.
In commenting on the acquisition of Total Supply, the PaperlinX Executive General Manager, Australia, New Zealand and Asia, Andy Preece said: “Targeted acquisitions such as Total represent a strategic priority for the ANZA business as well as the PaperlinX Group globally as we seek to fund and drive product diversification. The marriage of the two businesses provides the opportunity for rapid and significant growth with Total now able to fully leverage Spicers comprehensive footprint and infrastructure.”
Known as Total since 1994, the business was originally incorporated in 1962 and has been serving the graphic art and sign industries ever since. Total is based predominantly out of Auckland.
