Nuplex agrees to buy Med-Chem ingredient business

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%.

Businesswire.co.nz

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