By GEOFF SENESCALL
US Office Products, once the owner of more than $1.5 billion of assets in New Zealand, will be left with just a printing operation here after a volley of sales this week.
Even its printing business, with annual turnover of $300 million, could be sold as the Washington company digs itself out of financial strife through restructuring.
But there were no immediate plans to sell it, said David Ballantyne, investment manager of the firm's New Zealand subsidiary, Blue Star Group.
"The printing business is a very good performer," he said. "We don't have any plans yet to do anything.
"Certainly the thrust of US Office Products is to go back to the core [office products business] in the US."
Mr Ballantyne said the company was very conscious of the weak New Zealand dollar.
Even bookseller Whitcoulls might not be sold, despite it being on the market since last May.
"If we are not getting the premium pricing and the currency is also down we would be reluctant to sell," Mr Ballantyne said.
US Office Products sold Blue Star Business Supplies this week to fellow American Boise Cascade for $US115 million ($277 million).
It also sold its remaining 40 per cent shareholding in Blue Star Business Solutions to Eric Watson's investment vehicle Cullen Investments for an undisclosed sum.
Last year, Cullen took a 60 per cent slice of Business Solutions, whose assets include ge-i (formerly Wang), Cogent Communications, Ubix Document Solutions, Hart Candy and Auldhouse Computer Training.
The value of Business Solutions is about $145 million, which includes $100 million of debt.
Five years ago, Mr Watson sold Blue Star to US Office Products in a shares and options deal, which he has since cashed.
Mr Ballantyne said the individual companies had good assets, butthe low currency was hurting their value.
"For example, the year that McCollam Printers was bought the local currency was worth 70c to the US." Now it was just over 40c.
McCollam is one of US Office Product's main printing assets in New Zealand, along with Government Print.
About one-third of its printing operations are based in Melbourne and Sydney.
Broking firm Credit Suisse First Boston is handling the sale of Whitcoulls, which incudes Australia's biggest book chain, Angus & Robertson.
US Office Products culls local holdings
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