October 22 2014, David R Brown
New Australasian specialty distributor Axieo created as Nuplex divests to CHAMP Private Equity
Nuplex Industries Ltd has agreed to divest its Specialties division to Australian PE company, Champ Private Equity for A$127.5 million. The Specialties division comprises a chemical distribution and agency business, Nuplex Specialties, and a plastic additives business, Nuplex Masterbatch, which will now form part of Axieo Pty Limited, a newly created company formed by Champ Private Equity for the purpose of the acquisition.
Selling Nuplex Specialities and Nuplex Mastebatch will alow these businesses to focus on their own strategies and opportunities for growth
Emery Severin
CEO, Nuplex Industries
Nuplex Chairman, Peter Springford said whilst Nuplez Specialties had delivered attractive returns in the past, it and Nuplex Masterbatch are non-core to Nuplex's global strategy.
“The Board was not actively seeking to divest these businesses, however they have become increasingly non-core to the company's strategy as the resins business has continued to grow. When the offer was recieved from CHAMP, we undertook a careful evaluation of the medium term outlook for both businesses, and in the context of Nuplex's strategy, we assessed the return they could deliver shareholders as part of our portfolio relative to the offer price.”
“Following this review, the Board concluded that the negotiated price was an attactive one and the offer was in the best long-term interests of shareholders.”
Nuplex CEO, Emery Severin said, “Selling Nuplex Specialities and Nuplex Mastebatch will alow these businesses to focus on their own strategies and opportunities for growth, and optimises the long-term interests of Principals, customers and staff.”
Axieo has advised it is their intention that all employees working for within these businesses will be offered employment. Nuplex's former Regional President of Australia and New Zealand, Sam Bastounas will be Axieo's inaugural CEO.
For the financial year ending June 2014, Nuplex's Specialties division achieved revenues of NZ$289.7M. The chemical distribution business accounted for around 80% of the Specialties division total revenues and is focused primarily on Australian and New Zealand regions.
About Nuplex
With approximately NZ$1.6Bn in sales in over 80 countries worldwide, Nuplex is a global specialty chemical company dedicated to the production of innovative, high-quality resins used in decorative, industrial, automotive, and protective coatings and composites.
About CHAMP Private Equity
CHAMP is one of Australasia's largest independent buyout fund managers focused on investing in Australian, New Zealand and South-East Asian businesses.
Source(s): Nuplex Industries Press Release
Further Information
Visit: http://www.nuplex.com