Australian fine paper wholesaler PaperlinX has signed an agreement to acquire the business and assets of New Zealand-based Canterbury Packaging for A$2m ($2.1m).
Following the acquisition, Canterbury Packaging would be united with the existing Spicers business in New Zealand of A$95m and the purchase consideration will be funded from local credit facilities available within Spicers.
PaperlinX ANZA region executive general manager Andy Preece said the acquisition is a small but significant further step in the company’s diversified products strategy.
"This acquisition will provide a building block for Spicers New Zealand to diversify and leverage our existing footprint and infrastructure to build a national business with the expertise from Canterbury Packaging," Preece added.
According to PaperlinX, the acquisition is set to be completed on 1 October 2012.
Canterbury Packaging distributes industrial packaging consumables, hygiene, safety and hospitality products to customers in the Christchurch area.