JP is spending USD 75 Million for a 51 percent stake, with the option to buy the remaining 49 percent in two to three years time.
April 13, 2017
Japan Pulp & Paper (JP) business is buying two of Australia’s big paper merchants- BJ Ball and KW Doggett, which is set to become the country’s largest paper merchant merging. Under the deal BJ Ball AU will acquire 100 percent of KW Doggett and BJ Ball NZ. Following this acquisition, JP will have a 51 per cent stake in the new company, PagePack AU, which will own 100 percent of BJ Ball AU, BJ Ball NZ and KW Doggett.
Other shareholders will be PagePack NZ – the current owner of BJ Ball – with 29 percent, KW Doggett Properties with 16.2 percent, and Ken Ardcowan Pty which will own 2.86 percent. The latter two entities are the current owners of KW Doggett.
According to media reports, CEO of BJ Ball, Mr. Craig Brown was quoted as saying, “BJ Ball has always strived to be a diversified and progressive supply partner to the graphic communications market. Joining forces with KW Doggett Fine Paper and JP has been carefully considered and we have no doubt this next step will future-proof our position while also being supportive of the industry long-term.”
The whole deal is subject to ACCC approval, with JP expecting a decision by July.