Carter Holt Harvey Sells Paper Distribution Businesses
Carter Holt Harvey announced today the sale of its paper distribution businesses, Raleigh Paper in Australia and BJ Ball
Papers in New Zealand, to Edwards Dunlop for A$61m (NZ$74m). The sale is conditional on finance and is expected to be
effective 30 April 2002.
Chris Liddell, CEO for Carter Holt Harvey, said the sale reflects the company’s ongoing focus on refining its portfolio
of businesses.
“Both Raleigh Paper and BJ Ball Papers have been consistent contributors to Carter Holt Harvey’s profitability over
recent years. However we also take into account our ability to develop a leadership position and create growth
opportunities.
“At a time of ongoing industry rationalisation, we determined that the potential of the businesses could best be
realised by joining with a specialist company in the paper market such as Edwards Dunlop, who are the largest
independent paper merchant in Australasia” said Mr Liddell.
The combination of the Edwards Dunlop and Raleigh Paper/BJ Ball Papers businesses creates a clear number two competitor
to Paperlinx in the Australasian market, with a 20-25% share of both the Australian and New Zealand paper distribution
markets.
Raleigh Paper and BJ Ball Papers operate primarily as wholesale paper merchants, buying paper from a variety of
suppliers and selling and promoting it to printers, designers, stationery and form converters, label producers and
retail and office supply distributors. Raleigh Paper operates from warehouses in Sydney, Melbourne and Brisbane, and BJ
Ball Papers from warehouses in Auckland, Wellington, Christchurch and Dunedin. The acquired businesses will continue to
operate as Raleigh Paper and BJ Ball Papers.
The businesses have a combined book value of A$52m (NZ$63m) and annual turnover of A$130m (NZ$157m). They employ 160
people.
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