National printing company GEON Group is on the lookout for additional acquisitions in Western Australia following its purchase of Bassendean firm, Advance Press Pty Ltd, for about $11 million.
National printing company GEON Group is on the lookout for additional acquisitions in Western Australia following its purchase of Bassendean firm, Advance Press Pty Ltd, for about $11 million.
Sydney-based GEON, which was formerly known as Pacific Print Group, is also planning to invest additional capital in the Advance business so that it can offer a wider range of services.
Chief executive Gordon Towell said GEON had agreed to pay “just over $11 million” for Advance, which is currently owned by West Perth company CTI Logistics Ltd.
CTI, which has owned Advance for 20 years, said it expected to make a $4.5 million profit on the transaction.
Mr Towell said his group, which is majority owned by Gresham Private Equity, had been looking for an acquisition in WA for nearly six months to complete its national network.
“Our strategy is to provide local production in all of the population centres in Australia and New Zealand,” he said.
Mr Towell added that GEON was keen to expand further.
“Yes, we certainly haven’t by any means ended our acquisition program and WA is an increasingly important market,” he said.
“It’s an area where we want to increase our presence.”
On completion of the purchase, GEON will comprise 25 operating businesses in Australia and New Zealand, with revenue of about $400 million and 1,500 employees.
Mr Towell said this gave GEON a strong competitive edge.
“This acquisition now provides us with unmatched geographical coverage across Australia and New Zealand, which gives us a unique ability to service the large corporate market,” he said.
A second part of GEON’s strategy was to offer a wider suite of services, including direct mail and digital printing.
“We are expanding quite strongly into mail and digital and will look to do that in Perth,” Mr Towell said.
He said the company hoped to achieve this by acquiring direct mail equipment and building its in-house capability organically.
Advance Press will continue to operate from its Bassendean premises and will be managed by the existing management team led by general manager Ian Smith.
The Advance purchase will be effective from October 1 2007.
The deal will provide a big windfall for CTI, which posted a net profit of $3.1 million in the year to June 30 2007.
Headed by executive chairman David Watson, the group operates a diverse mix of logistics, transport and security services, plastic products manufacturing and investment activities.
