Those buyers are thought to include Salmat, which has asked the ACCC for a ruling, and possibly Xerox, which although it has divested its bureau business over recent years may want to protect its business with HPA, which is substantial. Other potential purchasers are unknown. A management buyout is not one of the bids.

Timeline for the sale announcement is likely to be in the third quarter

Despite HPA's major spend on Xerox equipment HPA is currently 51 per cent owned by Kodak, with Investors Mutual owning 17 per cent. Managing director Terry Brady, who has been in the role since 1991, has a minority stake. The company is a public entity.

HPA claims to be the country's biggest business process outsourcing company, which translates into processing and printing transactional documents, typically bills for utilities and financial institutions. HPA is also developing the rapidly growing transpromotional market.

Revenue for HPA was $172m in 2006, with a five per cent upswing predicted for this year. Its biggest rival Salmat has a far higher revenue of $500m, but draws that from three divisions, with its Streetwalker leaflet delivery and Call Centre.

HPA is also the first company in the world to take delivery of the new Fuji Xerox colour web printer, which is, according to Terry Brady 'fantastic'. He says, We are currently printing 54,000 impressions an hour full colour with variable data on each issue, the output is simply brilliant."

Hermes Precisa (HPA) was originally established in 1989 through the merger of Endata, Datamail and Bell & Howell Australia. In December 2000, HPA was listed on the ASX.The company operates through seven linked branches in every state and territory in the country, except Tasmania, with 900 staff on the payroll..

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