Vertex spins off packaging division
provider, has successfully spun off its plastics packaging
business.
Vertex, Carter Holt Harvey, the New Zealand-based packaging provider, has successfully spun off its plastics packaging business.
Vertex raised NZ$61 million (€30m) from the flotation. The company had been 93 per cent owned by investment companies Pacific Equity, Bain Capital and their associates, who purchased it from Carter Holt.
It has forecast a 24 per cent rise in operating earnings for its initial public offer to $12 million, from $9.7 million in 2002.
Vertex has moved from a centralised structure under Carter Holt Harvey to numerous divisions manufacturing a range of plastic food containers, moulded components and industrial goods.
As a result, the company has factories in Wellington, Hamilton and it is New Zealand's largest rigid plastics packaging manufacturer.
Vertex's diverse products range from packaging for dairy consumables such as yoghurt, bottles for household products, trays, industrial containers, and Securefresh (supplying machinery to companies to produce longlife packaging of fresh meat).
Its most recognisable products include containers for Tip Top brand ice cream and Fresh 'N Fruity yoghurt. The company also makes recycling bins, foam meat packing trays for supermarkets and butchers.
A large part of Vertex's forecast growth will be on the back of cost-cutting.
Around 20 per cent of Vertex's 2002 revenues totalling $85.9 million came from exports, mainly to Australia, the Pacific Islands and the United States.
