Direct Paper’s sale to Spicers ‘a logical step’

Australian family owned paper supplier, Direct Paper, is set to be sold to Spicers Australia with sales director Dale O’Neill saying the decision was a logical step for the company in a consolidating market.

Direct Paper, now in its 23rd year of operation, entered into a business sale agreement with Spicers Australia Pty Ltd and its parent company Kokusai Pulp & Paper on Tuesday.

The sale is expected to be completed by the first quarter of 2020, providing it is approved by the Australian Competition and Consumer Commission (ACCC).

Dale O’Neill is the current sales director at Direct Paper, with his brother Todd O’Neill as managing director. Both will now take senior roles under the new ownership.

All 50 Direct Paper staff will also continue across the operation which has warehousing sites in Sydney, Melbourne and Brisbane, Todd O’Neill told Sprinter.

“It’s business as usual for staff and for everybody,” O’Neill said.

“We think this is a logical step in a consolidating market for the fine paper side of it. We only play a smaller part but we feel that KPP (Kokusai Pulp & Paper) can bring us bigger buying power and a stronger presence in the market.

“This gives us an opportunity to grow the business in the different segments that we play in and it means we have the strength of a global player in a market that is pretty tough.

“It’s an exciting time for us. Partnering up with a player like KPP gives us a lot of stability going forward.”

O’Neill also ruled out any notion that the demise of trade printer Whirlwind Print, that left Direct Paper hanging with substantial losses, had any bearing on the decision to sell.

“Although annoying Whirlwind wasn’t something that had any bearing on this decision,” O’Neill added.

In a statement to customers, Direct Paper said:

“This announcement comes after careful consideration by the O’Neill family to join the business with Spicers Australia and more broadly to Kokusai Pulp & Paper Co., Ltd, (KPP) the ultimate owner of Spicers Australia. We feel this move will solidify the business going forward and present great new opportunities for all stake holders in the business

We would like to thank our loyal customer base for your loyal support over the last 23 years and your continued support of the business and staff during this transition.

Direct Paper will continue to operate as per usual now until the ownership is finalised in the coming months.

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One thought on “Direct Paper’s sale to Spicers ‘a logical step’

  1. Interesting to see if the ACCC let it go through, will pretty much create a duopoly, which will see prices rocket up to cover past losses.

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