Euronext Paris-listed Quadient divested its Graphics business in Australia and New Zealand in January, selling to long-term partner Smartech Business Systems Australia Pty Ltd.
The move, which was driven by the company's Back to Growth strategy, achieved a sale of AUD $6 million, including $2 million in deferred payments.
The Graphics business, which employs an estimated 140 people, was a subsidiary of Quadient focused on document finishing solutions, mailing fulfilment and large format and digital print solutions in Australia and New Zealand.
As part of the transaction, technology solutions provider Smartech will become the distributor of Quadient’s Mail-Related solutions in Australia and New Zealand and continue to serve Quadient’s more than 19,000 customers in the region.
US-based law firm Quarles & Brady led the transaction advising Quadient, working alongside Lander & Rogers, which managed Australian jurisdiction-specific requirements including the share purchase agreement and other transaction documents, as well as Foreign Investment Review Board (FIRB) approval requirements regarding foreign investment in Australia, which were the subject of major government changes on 1 January 2021.
Lander & Rogers corporate partner, Jared Smith, congratulated the parties on the closing of this transaction and welcomed the government's timely changes, which meant the transaction was not subject to the FIRB approval process, saving time and costs for both parties.
"The changes included reinstatement of pre-COVID monetary thresholds, which were adjusted to $0 in March 2020 for all acquisitions subject to the FIRB regime. It's positive news for foreign investors, which continue to show strong interest in the local market, particularly the real estate, energy and natural resources, finance and technology sectors," said Jared.
Jared noted deal activity has remained strong since rebounding in Q3 2020, with continued divestiture of non-core business assets creating opportunities for buyers.
Mayfair Advisory and Mills Oakley advised Smartech on the deal, while Grant Samuel acted as financial adviser to Quadient.
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