IVE Group has announced it has entered into an agreement to acquire substantially all of the assets of Ovato for a net purchase consideration of approximately $16 million, subject to clearance from the Australian Competition and Consumer Commission (ACCC).
The announcement comes after IVE Group entered an implementation deed with Ovato administrators Chris Hill, Ross Blakeley and Ben Campbell of FTI Consulting on August 10 to acquire substantially all, or a material part or parts of, Ovato’s assets and its subsidiaries.
“IVE today announced that it has entered into an agreement to acquire substantially all of the assets of Ovato for a net purchase consideration of approximately $16 million,” IVE Group executive chairman Geoff Selig said in a statement posted to the ASX this morning.
“The agreement is subject to ACCC clearance and the satisfaction of customary conditions. It is expected the acquisition will complete within two weeks should ACCC clearance be obtained.”
Selig said current annual revenues of Ovato’s Australian web offset printing operations are estimated to be around $160 million.
“IVE intends to operate Ovato’s WA (Bibra Lake) site, and for a period of approximately 18 months Ovato’s NSW (Warwick Farm) site. Over this period, it is IVE’s intention that the Ovato Warwick Farm operations will be fully integrated into the broader IVE Group,” Selig said.
IVE posted its full year results last Thursday, which included a $30-40 million allowance for acquisitions. Selig confirmed in today’s statement the company has sufficient cash reserves to fund this acquisition.
FTI Consulting also issued a statement about the sale agreement.
“It is expected the acquisition will complete within two weeks should ACCC clearance be obtained. The Administrators will continue to operate the Ovato business on a business-as-usual basis during that period,” the statement said.
The announcement follows Ovato entering voluntary administration in July.
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How sad to see the end.
The one brand that stands out is the business where it all began with in excess of a 100-year legacy being WILKE. The brand and name that merged, grew and morphed over the journey into what was the end.
Starting in the back lanes of Melbourne as a small family owned and run beginning to the most powerful print media company in Australia through strong, energetic, and driven management, staff and employees until a pandemic and several mergers have delivered such an undignified death. From what was then, to what is now – The END.
The effect is wide spread for those employees, suppliers and shareholders who had faith in the business and its management that will now be able to do nothing more than say, Good Bye.