New Zealand packaging services company Freightways (FRE:NZX) said today it is to buy the business and assets of National Records Managers (NRM) and Fine Paper Suppliers (FPS) for A$5.9 million.
NRM operates a document and data storage business in Canberra and will be managed by FRE’s Australia based DataBank team.
Freightways said this acquisition results in DataBank establishing its own direct presence in the Canberra market, having previously operated through an agency arrangement with NRM.
FPS operates a document destruction & paper recycling business in Melbourne. It will be merged with FRE’s existing Shred-X Melbourne operations that were established in July 2007.
Freightways expects the new business to generate EBITDA of about $1 million in the 2009 financial year.
It expects these acquisitions to be immediately EPS (earnings per share) positive.
FRE operates in the express package, business mail and information management markets. The acquisitions of NRM and FPS are consistent with Freightways’ strategy to develop growth opportunities that complement its existing operations.
Shares in FRE added 1 cent to close at $3.54.
