printing - security  mergers & acquisitions 
Award-winning Melbourne security printer, SNP SPrint (Australia) Pty Ltd, is to be sold by its Singapore-based, owners, publicly-listed SNP Corporation Ltd in a deal worth AUD$3.08 m to Secure Expertise Pty Ltd. The share sale agreement was signed on December 8. Secure Expertise Pty Ltd is jointly owned by Mark Reid, a well-known and highly regarded industry identity, and Chris Lawrence, a private investor with interests in Australia, Asia and the UK.

The purchase is to be funded by a mix of debt and equity that provides adequate funding for seasonal fluctuations, new product development and sales growth and the transaction is expected to be completed mid- to late January 2005.

The printing company, then known as Cambec, had been acquired by SNP in 1994 to provide a presence in Australia for the then expanding SNP Group, and to provide commercial and security printing services, in particular the printing of postage stamps and casino cards in Australia.

Under new ownership the company will trade as SEP SPrint Australia Pty Ltd. Reid will assume the role of managing director, replacing the incumbent Henry Chia, who recently resigned to rejoin the merchant banking industry and was replaced by Lee Wei Mun.

Other directors will include Lawrence and an independent chairman who is yet to be appointed. The new owners do not plan any changes in either management or other employees.

Reid has over 25 years printing industry experience, starting as an apprentice and progressing to directorship of an Asia-based major international printing group. He also served as chief executive of a large Australian sheetfed printer. He has an MBA from the University of South Australia, and also earned membership of The Institute of Printing, London.

Since 1999, Reid has operated a consulting and research company focused on the printing industry and is a regional councillor for the Printing Industries Association of Australia.

"We are attracted to security printing in general, and SNP’s offerings in particular", Reid tells i-grafix. “We plan to grow the business by emphasising its value proposition to the domestic and international security printing markets. The company is already a successful exporter and we believe Australia is an ideal platform from which to build an export market for security print products and services".

Meanwhile, SNP attributes its withdrawal from the Australian market to the high cost of operations here, and a move to streamline its interests and operations to areas that are more cost effective, especially China from which the group derives more than 50 per cent of its annual revenues. According to SNP’s latest annual report, total revenues amounted to S$334.7 m in the financial year ended 2003.

"The divestment is part of SNP’s plan to strengthen our position in the Asia region", says Yeo Chee Tong, president and CEO of SNP. “We are confident that this exercise will contribute positively to our overall strengths and steer the SNP group into its next phase of growth".

According to an announcement from SNP, the sale of the Australian business will result in a loss of approximately S$3 m inclusive of exchange losses, however it will result in a cash inflow of A$3.78 million (or approximately S$4.8 m) for the company.

SNP Corporation Ltd, a key component of the Technology division of the Singapore Technologies group, is a prominent media company whose core businesses are in printing and publishing. SNP has 11 subsidiaries, four of which are based in Singapore, five in China/Hong Kong and the remaining two in Malaysia and Thailand.