Sharechat Logo

Nuplex agrees to buy Med-Chem ingredient business

Wednesday 24th March 2010

Text too small?

Nuplex Industries, a specialty chemicals manufacturer, agreed to buy the ingredients business of Med-Chem group, saying the purchase will lift earnings for its Specialties unit in the next 12 months.

The price wasn’t disclosed. Med-Chem is a closely held group which also distributes medical and surgical equipment. Med-Chem Surgical will remain with the current owners, Nuplex said. The group is owned by Geoffrey Walker and Graham Carey, according to the Companies Office.

The acquisition will lift profit at Nuplex’s Specialities division by 15% for the first 12 months, the company said in a statement today. Employees in Australia and New Zealand who are directly related to sales and customer service will join Nuplex.

“This acquisition is consistent with our strategy to grow in the Australasian high compliance market sectors,” said managing director John Hirst. It will “continue our focus on functional materials where Nuplex’s in-house technical and compliance resources add value to distributed raw materials.”

Med-Chem has “a strong market position as a supplier to sophisticated segments of the Australian and New Zealand food, pharmaceutical and personal care manufacturing industries,” Hirst said.

Shares of Nuplex rose 1 cent to $3.32 yesterday and have gained about 13% this year while the NZX 50 Index has slipped about 1%.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Nuplex targets half billion dollar Asian sales within five years
Nuplex FY profit drops 31 percent on weak ANZ, EMEA markets, writedowns
Nuplex cuts FY guidance again as Australian manufacturing splutters; stock drops
Nuplex 1H profit misses forecasts; annual guidance cut on strong kiwi, weak trading conditions
Nuplex looks at imputing future dividends, flags increased earnings
Nuplex plans restructuring in Australia, NZ to cut 2013 profit
Nuplex FY profit falls, guidance met
Nuplex raises US$105M in US private placement
Nuplex sees full-year earnings at bottom of range
Nuplex 1H profit drops 23% on Australasian weakness