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

MARKET CLOSE: NZ stocks rise, led by MetroGlass; SkyCity, A2 Milk fall
China names four corruption suspects in Auckland, English not considering extradition treaty
NZ dollar remains below 69 US cents on weaker commodities, trade threats
Kaikoura quake to shave 0.1% from NZ's GDP over two years, report shows
ACCC takes legal action against Murray Goulburn, drops action against Fonterra
INNO Capital Pledges Support for Parker Vs Cojanu Fight
NZ business confidence still upbeat as firms anticipate more activity, bigger profits
LanzaTech narrows annual loss in 2016; wary of petrol prices, comercialising tech
NZ exports rise 11% to 2-year high in March as dairy values increase
NZ wool auction volumes remain high as farmers seek to move stockpiles

IRG See IRG research reports