Colorite takeovers a milestone in NZ consolidation

Attracted by the critical mass of the private equity fuelled merger of Christchurch-based prepress firm Preprint Solutions (PPS) and Colorite, two more firms have joined the group – Milestone and Tintz Digital.,

The Hamilton-based prepress and digital printing businesses are believed to have sought the intervention and the plan is to merge both companies into a branch of the Colorite Group.

The new acquisitions reinforce Colorite’s position as the largest prepress company in New Zealand by far, while its enthusiasm for further consolidation mirrors that of the large printing companies.  But according to Keith Bainbridge, ceo, the company is more diversified than the market gives it credit, despite its extensive plate making business. It has just placed an order for the latest Kodak VLF platemaker, mainly to service the tin packaging sector.

“Colorite hasn’t been an exclusive prepress house for almost ten years. We’ve been into offset printing here in Auckland and we’ve got other interests too. We saw the way the market was going and diversified early,” he said.

The enlarged Colorite also has interests in gravure engraving – Colorite Engraving – as well as in digital printing through a Sydney-based venture that operates a HP Indigo WS 4000 in packaging print. With the two new acquisitions the company now employs more than 120 people.

Despite merging the PPS and Colorite facilities in Christchurch and in Auckland there has been little disruption, which Bainbridge puts down to the close cultural fit of the two companies. “It’s all gone pretty smoothly, without any major restructuring. I’m sure it will be the same with Hamilton,” he said.

Colorite Group is owned by a consortium headed by former PPS owner, Richard Le Grice, and financier, Cliff Cook. According to a statement issued by Mr le Grice, the original merger in April this year was necessary to support the New Zealand print and packaging industry. “It enables us… to make the necessary investment to allow participants to compete in a widening international stage,” he said.