Print and marketing business IVE Group says it's signed a deal to “acquire substantially all of the assets of Ovato for a net purchase consideration of approximately $16 million.” [Update: The agreement will not be opposed by the ACCC].
“Current annual revenues of Ovato’s Australian web offset printing operations subject to the acquisition are estimated to be circa $160 million,” IVE Group executive chairman Geoff Selig told the ASX this morning. (Editor's note: this compares to $358.8 million reported to the ASX for the 2021 FY - a massive decline of over 50%, partially due to sell-offs, such as the NZ closure.)
“IVE intends to operate Ovato’s WA (Bibra Lake) site, and for a period of approximately 18 months Ovato’s NSW (Warwick Farm) site.
“Over this period, it is IVE’s intention that the Ovato Warwick Farm operations will be fully integrated into the broader IVE Group.”
Ovato's site at Warwick Farm, Sydney
“IVE has sufficient cash reserves to fund the acquisition,” Selig said.
It’s expected the acquisition will complete within 2 weeks following ACCC clearance and that the deal will not be opposed.
Earlier this month, IVE Group launched an ‘implementation deed’ to acquire its troubled competitor Ovato, which last month went into administration.
Last week, IVE Group posted full-year 2022 revenue of $759 million, with net profit after tax up 66% to $33m.
