Family owned label converter Hally Group, which has operations across Australia and New Zealand, has been bought by Kiwi label printer owner Hexagon Holdings.
The dela comes just a week after rival label printer Pemara was sold by the Macnamara family to Austrian company Constantia.
Hally Group, established in 1965, owns subsidiaries Hally Labels in Brisbane, Christchurch and Aukland, AC Labels in Sydney and MarkIt Labels in Christchurch.
Hexagon has three label business, all operating in New Zealand. It says there are no plans to merge any Hally and Hexagon subsidiaries, and according to the companies, both will continue to trade independently and competitively.
Hally Group chairman Grant Hally says the acquisition is an opportune move for the veteran label makers. The business was started in 1965 by Grant’s parents Ian and Pam Hally.
“It has been a wonderful 50 year chapter for our family. We are pleased to see the businesses joining a group of established and successful industry participants,” he says.
Hexagon Holdings says the purchase of the three label subsidiaries will offer growth opportunity for the business in the Trans-Tasman region.
[Related: Hally Label's growth]
Director of Hexagon Clark Perkins says, “Hally, AC & Mark-It are impressive and professional businesses, with a deep understanding of the label sector.”
“Hexagon and Hally are highly complementary, and we are excited about the growth prospects of the expanded group”.
Hally Labels entered Australia in 1998 with a manufacturing base in Brisbane, then acquired the Brisbane based label division of the Buckner Group in 2008, and Sydney based AC Labels in 2013.
Hexagon is owned by Mercury Capital and Tom Sturgess, and is headquartered in Auckland.
After completing the acquisition, Hexagon will have combined annual sales of NZ$120m.
The transaction is due to be completed in mid December, the value of the deal, which is for 100 per cent of the shares, has not been disclosed.
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