It is believed the deal will make Australian Paper’s stationery subsidiary, Australian Office, the largest envelope manufacturer and overprinter in the country. The company already produces around 1 billion envelopes a year.

Australian Paper chief executive Jim Henneberry (pictured) announced the news yesterday afternoon.

“This purchase by Australian Paper will provide its Australian Office division with the opportunity to expand and rationalise its manufacturing capacity,” he said.

PPB Advisory confirmed that a contract had been signed but would not comment on the fate of Australian Envelopes’ debts or the 300 staff members axed in the company collapse.

Martin Rodger, general marketing manager of Australian Paper, told ProPrint that PPB Advisory would reveal specifics of the deal at a creditors meeting on 26 July.

He said that the assets being acquired would vary by state and that Australian Office would need to “get machinery up and running as soon as possible” to meet the market demand.

ProPrint spoke to a number of rival envelope firms, who said it was too early to guess at the impact of the buyout.

One competitor said the fact that the assets had not been sold overseas was a positive sign for the Australian market.

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