Opus says the full financial benefits of the acquisition are expected to be seen in the 2014 financial year.
Settlement of the consideration for the acquisition will occur on a deferred basis over a two year period, based on the actual revenue contribution with minimum thresholds in place.
The business will operate under Opus Group’s subsidiary CanPrint brand from its production facility in Canberra. Cliff Brigstocke, CEO, Opus told Australian Printer, “We see the Blue Star Canberra transaction as positive outcome for our Group’s footprint and market position. The acquisition follows the recent wave of industry consolidation based on overcapacity. It delivers benefits to Canprint in a number of areas. The customer base and production equipment allow us to increase the capability and capacity of Canprint’s operations. At the same time it provides Canberra customers with a one-stop shop to meet their needs.”
The deal makes Opus the number one printer in Canberra.
The expanding Opus Group has added to its management team with more former Geon staff, last week it hired former NSW general manager Roger Kirwan as national operations manager, and it has just take on Geon’s former national operations manager, Gary Pool, and commercial finance manager, Joel Sokkar.
Meanwhile Opus has sold its Singapore building with the $6m of net proceeds to be used to reduce the net debt as part of the Group’s capital management plant.
The company says that is seeking new rationalisation opportunities, as it experiences short term revenue and margin pressure. It says that it expects its second half figures for this year to be in line with the first, where it reported a loss of $3.4m.
Brigstocke says, “This rationalisation has been anticipated for some time and whilst it presents short term challenges, the long term benefits will flow to the Opus Group as a result of reduced excess capacity in the market and a more stable competitive environment. The Opus Group business model based on shorter runs with shorter lead times supported by digital technology, workflow automation and being a key part of our customers supply chain through our global footprint, positions us to take advantage of the current structural changes in the market.”
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