This acquisition also gives Colorpak entry into the New Zealand market with a manufacturing operation in Auckland. The acquisition includes the Montage solutions centre which provides pre-press, and structural design services to the CHH carton and corrugated businesses as well as the trade.

Colorpak will acquire all the operating assets and assume all of the operating liabilities of the business including plant and equipment, working capital, premises leases and all employee entitlements.

Commenting on the deal, Alex Commins managing director of Colorpak says, “Combining with CHH will significantly enhance our business in the folding cartons sector and enable us to service clients with a broader product and service offering across the whole of Australia and New Zealand.”

Meanwhile a statement from CHH outlines, “We are pleased Colorpak has acquired our folding carton converting business. We are keen to see Colorpak’s continued success as they will be the key channel to market for a large volume of carton board products from our associated Whakatane Mill.”

The proposal is subject to various conditions and receiving Australian Competition & Consumer Commission clearance. Colorpak intends to enter into a sale agreement and currently hopes to complete the transaction by the end of 2010 or early 2011.

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