Second bid for RX Plastics

By NZPA

Thursday 21st February 2008

A second company is seeking Commerce Commission clearance to buy plastic product-manufacturer RX Plastics.

The commission said today that Australian-listed Crane Group had applied for clearance to buy all the shares or assets of RX Plastics, which manufactures irrigation products, water storage tanks and effluent disposal systems, including plastic pipes at plants in Ashburton and Hamilton.

New Zealand Investment Holdings (NZIH) has already applied to the commission for the same thing.

NZIH is the New Zealand holding company for the Aliaxis Group, and in this country is most widely known through its subsidiary, Marley New Zealand which manufactures and distributes various plastic products.

The NZIH application identifies Crane as one of its major competitors.

RX Plastics chairman Keith Goodall said the company had invited a number of selected parties to make indicative bids by last Friday.

Those bids were now being assessed, with a short list to be drawn up of those to undertake full due diligence.

RX Plastics was a privately owned company, with 85% of its shares owned by family holdings of one of its founders, Hank Murney.

Goodall said RX Plastics had a staff of about 180 and was a major employer in Ashburton.

It had said that the retention of manufacturing operations in the existing premises was one of the factors it would take into account in the sales process.

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