Geon’s break-up is looking increasing like the receiver’s best way to raise money, as a sale of what’s left of the company before it runs out of paper now looks unlikely.
Australian Printer understands the receiver is now working with potential buyers of individual businesses, rather than trying to sell it off as a whole, or as what remains of the whole.
Only half a dozen print companies could consider buying Geon in its entirety; PMP, IPMG, Blue Star, Opus, Franklin Web and Computershare.
Of these PMP is a non-starter, it exited the sheetfed business five years ago, and is currently on a ‘transformation’ plan to cut costs and concentrate on core business, which is web printing.
IPMG may fancy taking out a competitor, getting its hands on the customer list, and keeping a couple of the sites open while selling off the rest of the kit overseas, if the buy price is right. Blue Star’s new owners the Selig brothers may be looking at the same scenario, but it may be to soon after their own purchase to persuade their financiers to stump up more cash, although there will be attractions to the deal, primarily the customers.
Opus is unlikely to bid, it likes to operate in niche markets, steering clear of the hurly burly of general commercial print. Franklin and Computershare could both raise the money, but would be similarly unlikely to want to get into the commercial sheetfed world.
That leaves the prospect of Geon being broken up, reverting back to the types of owner operated businesses it was before the private equity buying spree of .