ACCO Brands buys out Pelikan Artline

ACCO BrandsThe ACCO Brands Corporation has acquired the remaining 50 per cent of Pelikan Artline Pty Limited, its joint-venture company serving the Australia and New Zealand markets, for approximately $103 million, the company announced in a news release.

With the acquisition, the ACCO Brands expects it will be immediately accretive to its adjusted earnings per share and will contribute an estimated $0.06 in the first 12 months, including anticipated synergies but excluding one-time restructuring, integration and purchase accounting costs.

When fully realised, the company expects to generate approximately $8 million in synergies, primarily through purchasing and distribution efficiencies, and elimination of redundant positions. The company expects integration and cash restructuring expenses associated with the acquisition will be approximately $15 million. The company expects minimal change in its pro-forma leverage as a result of the acquisition.

Pelikan Artline is a distributor of academic, consumer and business products in Australia and New Zealand.

The estimated full-year incremental sales contribution to ACCO Brands would be approximately $112 million and the full-year incremental adjusted EBITDA contribution would be approximately $17 million, pre-synergies, based on 2015 results. Pelikan Artline will be combined with ACCO Brands’ existing businesses in Australia and New Zealand.

“We are very pleased that we will be able to combine our complementary businesses to create the largest supplier of premier branded business, academic and consumer products in Australia and New Zealand,” said ACCO Brands president and chief executive officer, Boris Elisman.

“The new ACCO Brands Australia will provide us a strong foundation for long-term growth while deepening our customer relationships and improving our competitiveness in the region,” Elisman added.

The transaction is expected to be consummated in the next 60 days, subject to customary closing conditions. Approximately 18 per cent of the purchase price will be used to redeem a minority shareholder interest in a subsidiary of Pelikan Artline, which is expected to occur following closing of the acquisition.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.