US-based Graphic Packaging has purchased Colorpak for an undisclosed sum.
Acquiring 100 per cent of Colorpak shares, Graphic Packaging will combine Colorpak’s folding carbon capabilities with Graphic Packaging’s global expertise. David Scheible, chairman at Graphic Packaging, says, “The acquisition of Colorpak is a logical progression from our long term strategic partnership.
“Colorpak is a market leader in revenue and reputation which makes it an exciting opportunity for Graphic Packaging to consolidate its position and grow its presence in the Australia and New Zealand folding carton market.”
Colorpak shareholders look set to receive cash payments of 68 cents per share. The takeover by Graphic Packaging has boosted Colorpak shares by nearly 30 per cent. The Commins family, which owns 32 per cent of Colorpak shares, supported the takeover recommended by the company’s board.
Colorpak Chairman Geoff Willis says the proposal highlights the strategy involved in business. He says, “The takeover provides an opportunity for our shareholders to realise the value of their holdings at an attractive price.”
After going public in 2004, Colorpak’s share price reached a low of 39 cents in 2009. In 2011, after the company purchased the folding carton assets of Carter Holt Harvey its share price surged to 75 cents. The company’s share price peaked at 87 cents in December 2013 but has since fallen, increasing back up to 69 cents after the takeover bid was announced.
