The acquisition of Wadepack would considerably boost CHH\'s market share in Australia
New Zealand-based Carter Holt Harvey Limited (CHH) has launched a takeover bid for Australian folding carton manufacturer Wadepack. Wadepack directors are supporting for the bid, and recommending that the company’s shareholders accept the offer after approval has been given bhy the regulators (FIRB and ACCC) and in the absence of a better offer.
Some 40 per cent of Wadepack is owned by its managing director Ashod Nassabian who has seen the company transition from being a small Sydney-based operation, to become (through natural growth and acquisition) a national player through acquisition and Australia’s third largest folding carton converter after CHH and Amcor.
If it succeeds, the acquisition will not be the first for CHH in Australia, the company having taken over prepress specialist, Montage Graphics not so long ago.
Rhys Jones, CHH Pulp, Paper & Packaging business chief operating officer said that the company’s offer represented full and fair value for Wadepack and he believed it would be attractive to shareholders.
“Carter Holt Harvey’s bid is consistent with our strategy of investing in higher returning assets that deliver growth in our core areas – wood products, pulp, paper and packaging, supported by our forest assets", said Jones.
“We see this as a natural fit for both organisations, bringing together complementary customer bases across a variety of attractive market segments. Backed by our world-class paper operations, these customers will be better served by a new leader in the Australian carton packaging market". he said.
Assuming regulatory approval, Nassabian would stay on for 12 months as managing director of Wadepack which would operate initially as a separate division of CHH Packaging.
