Sharechat Logo

Blue Star snaps up Geon labels unit out of receivership

Wednesday 6th March 2013 1 Comment

Text too small?

Blue Star Group, the revitalised printing operation under new ownership, has bought a New Zealand labels unit from the receivers of ailing rival Geon Group.

The sale was completed yesterday and will see the transfer of 38 Geon employees and their entitlements to Blue Star, receivers Andrew Grenfell and William Black of McGrathNicol said in a statement. No price was disclosed, and the receivers are looking for buyers for the remainder of Geon's New Zealand businesses by the end of the week.

"This is a very pleasing outcome and enables the labels business to transition out of receivership under new ownership, which will provide stability for customers and employees," the receivers said.

Geon was placed in receivership last month after private equity firms KKR and Allegro mopped up the Australasian printing group's debt, taking control of the company. Geon was formed by the 2007 merger of Pacific Print Group and Promentum.

Printing companies have been struggling in recent years as publishers look for new ways to cut costs in an environment where more readers are shifting on-line.

Blue Star went through its own turmoil in recent years and was eventually bought by Australian private equity firm Mercury Capital and former owner Tom Sturgess from Champ Private Equity, who swallowed a $173 million writedown in goodwill.

BusinessDesk.co.nz



Comments from our readers

On 6 March 2013 at 11:17 am Ivan said:
Another dog of a company where the shareholders have been dumped on.
Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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.
Bookmark and Share   Printable version
Related News

UPDATE: Stride says 'stapled structure' protects PIE status while funds management grows
Major investor Devon slashes stake in Tower Insurance
Tiwai Point smelter's earnings plunge in second half of financial year
3pm embargo: NZ sharemilking farmers, pressured by low prices, are least happy with their bank, survey shows
Fat Prophet's Hot Stock: Sonic Healthcare (SHL.ASX)
Good NZ directors too wary of joining SME boards, FMA's Everett says
Speirs Group calls special meeting to vote on Unlisted move as NZAX winds down
RMA reform bill delayed two months as select committee seeks extension
US private equity firm Blackstone takes minority stake in Partners Life with $200 mln investment
UIL buys shares in wave technology developer Carnegie Wave Energy

IRG See IRG research reports