Japan Pulp and Paper to expand footprint in Australia / NZ; BJ Ball and K.W. Doggett Fine Paper to combine operations
(Tokyo, April 12, 2017) Japan Pulp and Paper, the country’s largest paper trading house, plans to integrate operations of Auckland-based PagePack — Oceania’s largest paper merchant and known for its BJ Ball brand — with Melbourne-based K.W.Doggett, the region’s third largest, Nikkei reports. The merger may come as soon as July. BJ Ball and K.W. Doggett Fine Paper are leading Australasian paper, packaging and print media distributors. This new entity will become the largest, most diversified paper, packaging and print media distribution business across both Australia and New Zealand. The transaction remains subject to conditions, including ACCC approval.
Japan Pulp and Paper will then acquire a 51% stake in the merged company from funds and other investors. The acquisition is estimated at nearly 7 billion yen ($63.9 million). The company also plans to acquire the remaining 49% over the next few years, which could swell acquisition costs to nearly 20 billion yen.
The move is in response to a shrinking domestic paper market due to falling population and other factors.
To download the company press release Go To: Announcing Equity Participation Resulting in Subsidiary Acquisition of the Entity Formed by the Coming Merger of BJ Ball Group and Doggett in the Oceania Region (Source: Nikkei & other news reports)
