Wood processor Carter Holt Harvey's A$84.8 million ($92.2 million) friendly takeover of Australian carton manufacturer Wadepack is a done deal after more than 90 per cent of shareholders accepted.
Now, Carter Holt can compulsorily acquire the outstanding shares.
The target for taking control is February 18.
Carter Holt's revenue will
increase by 2 or 3 per cent because of the purchase of the company, which has plants in Melbourne and Sydney and a staff of about 350.
Wadepack's annual revenue is about A$80 million, while Carter Holt's existing carton business is 10 to 20 per cent bigger.
Carter Holt's pulp, paper and packaging chief executive, Rhys Jones, said a two-brand strategy would see the Wadepack name live on alongside the existing Carter Holt brand of cartons.
But behind the scenes, the two operations would work together.
He highlighted the value of Wadepack as "a brand name that's been around for many, many decades".
The deal will raise Carter Holt's share of the Australian carton board market from 18 per cent to 30 per cent - nudging the number-one player, Amcor, which is on 33 per cent.
The Carter Holt mill at Whakatane will supply Wadepack with the high-quality folding board used to box pricey products such as cosmetics and pharmaceuticals.
The Carter Holt offer for Wadepack was A$2.60 cash a share and two 5Ac dividends a share.
Managing director Ashod Nassibian is exiting as a shareholder - selling a 40 per cent stake for A$33.9 million - but is tied in for 12 months on pay of A$1.15 million, consistent with his existing package.
The Australian Competition and Consumer Commission cleared the acquisition last month.
* Wood products company Tenon yesterday said the High Court had approved its planned $321 million capital return. The cash is the second part of the proceeds from the sale of its forest estate last year.
Tenon will cancel three out of every four ordinary and preference shares and pay out $1.533 for each share cancelled. The payment will be made on or around February 23.
