Colorpak has been bought by US-based Graphic Packaging for an undisclosed sum, ending the 30 year ownership of company by the Commins family. Graphic Packaging is acquiring 100 per cent of Colorpak shares with Colorpak shareholders set to receive cash payments of 68 cents per share. The takeover by Graphic Packaging has boosted Colorpak shares by nearly 30 per cent. The Commins family which owns 32 per cent of Colorpak shares supported the takeover recommended by the company’s board. Colorpak Chairman Geoff Willis says the proposal highlights the strategy involved in business.

Selling; Alex Commins, managing director of Colorpak

“[The takeover] provides an opportunity for our shareholders to realise the value of their holdings at an attractive price.” Graphic Packaging Chairman David Scheible says combining Colorpak’s leading folding carbon capabilities with Graphic Packaging’s global expertise will better serve customers in the market. “The acquisition of Colorpak is a logical progression from our long term strategic partnership,” says Scheible. “Colorpak is a market leader in revenue and reputation which makes it an exciting opportunity for Graphic Packaging to consolidate its position and grow its presence in the Australia and New Zealand folding carton market.” After going public in 2004, Colorpak’s share price reached a low of 39 cents in 2009. In 2011 after the company purchased the folding carton assets of Carter Holt Harvey its share price surged to 75 cents. The company’s share price peaked at 87 cents in December 2013 but has since fallen, increasing back up to 69 cents after the takeover bid was announced.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter