Hellaby sells Packaging division

Hellaby sells Packaging division

NEWS RELEASE: 29 May 2015

Investment company Hellaby Holdings Limited (‘Hellaby’) announced that it has today divested its Packaging division to Coveris, one of the world’s largest plastics packaging and coatings companies.

Hellaby’s Packaging division comprised Elldex Packaging Limited and Elldex Packaging Australia Pty Limited (‘Elldex’). The transaction enterprise value is around NZ$30 million which approximates carrying value allowing for transaction costs. The company will use the proceeds to reduce debt.

Hellaby Managing Director John Williamson said that the sale of the Packaging business was consistent with the company’s investment strategy. “Elldex has been a good investment for Hellaby since its acquisition in 2005. We had been looking to significantly grow the business and had committed to the construction of a food-grade manufacturing facility in Christchurch (due for completion later in 2015) as a platform for expansion.”

“Interestingly it was this new plant that attracted the attention of Coveris, which has been seeking an entry point into Australasia. While Elldex was not actually for sale, we have been approached by other interested parties in recent times. This Coveris opportunity created a win-win situation, and we believe that Coveris will be an excellent long-term owner for Elldex and its people.”

Mr Williamson said Hellaby was continuing to seek value accretive acquisition and divestment opportunities as it reshaped its portfolio. “This opportunity will give us added financial capacity to achieve our goals.”

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