Local paper merchant Spicers executive general manager Andy Preece is the new Paperlinx chief executive, filling the big shoes of Andrew Price just days after he was abruptly sacked by the board.
Preece’s first job will be handling the release of the paper merchant’s half year results, likely on Thursday, which are widely expected to be unfavourable, with the European business still struggling.
The Paperlinx share price was unmoved on the announcement, staying at 1.9c, which is where it was after its precipitous 33 per cent fall on the news of the sacking of Price.
The appointment of Preece comes as speculation is rife that Papelinx is seriously considering selling off its European arm, after offloading Spicers Canada two weeks ago for what was considered to be a lowly $65m.
[Related: The ups and downs of Paperlinx]
Paperlinx today praised its new chief executive for ‘turning around the Australian business’ and leading the ANZA region to strong performances over the past three years.
“He has proven capabilities to grow his business beyond the traditional commercial print sector as evidenced by successful diversified acquisitions in New Zealand during the past two years,” it says.
“Andy is well qualified to lead Paperlinx as the focus shifts towards scaling up our diversified businesses and tightening operational management across a more dynamic geographic footprint.”
Paperlinx suddenly terminated the contract of Preece’s predecessor Andrew Price “with immediate effect” last Wednesday night despite it being due to expire in April, without giving a reason.
“The board believes the group will benefit from new leadership as it continues to evaluate all strategic options as part of the strategic review,” it said in a brief statement.
The sudden decision comes in the midst of a 90-day strategic review of all Paperlinx non-ANZ operations, with ‘all options on the table’ from buying up companies to selling off overseas assets.
The company said last week that it “is in discussions with several interested parties which may result in the sale or restructure of part or all of its European operations”, and is also considering capital raisings or capital restructuring.
Preece has been in the industry for more than 20 years and joined Spicers in 2001 before rising to executive general manager of ANZA in 2012.
He will earn about $868,000 a year and can make up to double that based on performance. He will remain based in Australia but will spend time in Europe.
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