IVE Group has now completed its $16 million acquisition of substantially all of the assets of Ovato with the deal resulting in the 101-year-old publicly-listed giant being the only large scale heatset web offset print producer in Australia.

After a number of difficult years, Ovato, was placed in voluntary administration in July.

IVE Group soon emerged as a likely purchaser and offered to purchase Ovato’s heatset site located at Warwick Farm in NSW and Bibra Lakes in WA for $16 million with the purchase funded from the company’s existing facilities.

The Australian Competition and Consumer Commission approved the acquisition on August 30 and the deal has now been finalised. It ensures critical web offset printing capacity remains available to Australia’s largest retailers and publishers, including magazines such as The Economist, Australian Women’s Weekly, Vogue and catalogue producers such as Woolworths and Aldi.

IVE Group says the Ovato assets acquired by IVE are in good condition, complementary to IVE’s existing production facilities and will be integrated into IVE’s existing operations over an expected 18 month period.

In a statement to the ASX, IVE Group executive chairman Geoff Selig said the deal is expected to create a 21 per cent revenue uplift on IVE’s FY22 reported revenue of $760 million.

“Once the integration is complete, the expected $15m increase in underlying net profit after tax (NPAT) would represent a 41% notional increase in underlying NPAT relative to IVE’s FY23 guidance of $36m,” Selig said.

IVE Group CEO Matt Aitken said, “IVE has a strong track record of successfully integrating businesses and optimising operating leverage to deliver synergies.

“This acquisition will further strengthen and deepen IVE Group’s already tier 1 customer base and create an opportunity to cross-sell IVE’s broader diversified offer into the acquired customer base.”

In mid-September, IVE will be launching its transformed e-commerce marketplace Lasoo, representing 80 retailers across a broad range of sectors, including whitegoods, pets, alcohol, and groceries.

About IVE Group

A 101 year old business, IVE Group (IVE) is Australia’s largest diversified marketing communications business. With annual revenues of $750 million and 2000 employees, IVE has doubled in both revenue and earnings since listing on the ASX in December 2015, through a combination of strategic acquisitions and range of organic growth initiatives. IVE has a tier 1 client base, very strong balance sheet, long term solid earnings and cashflow, which support ongoing investment in growth initiatives, as well as a track record of paying high dividends. www.ivegroup.com.au

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