Geoff Selig is taking on GEON’s operations in Banksmeadow, Mt. Waverley and Parramatta, with plans to rationalise the printing sites in both cities and job losses inevitable.
The deal for the acquisition was struck late yesterday between Blue Star Australia, of which Selig is managing director, and GEON’s receivers, that sees the indebted print group’s Banksmeadow and Parramatta sites in NSW, along with its Mt. Waverley site in Victoria, in new hands.
“We’ve reached a binding agreement with the receivers to acquire selected assets and customers,” says Selig (pictured). “We didn’t sign a deal until late last night.
“The agreement is for GEON Banksmeadow, Mt. Waverley (in Victoria), and AP Mailing in Parramatta (NSW),” he says.
The move comes only two days after Blue Star NZ owner, Tom Sturgess, acquired GEON’s Christchurch-based Kiwi Labels business.
Blue Star says it will commence operating the relevant GEON sites immediately, working closely with GEON management to ensure ‘ongoing high service levels to customers’.
Receiver, Shaun Fraser of McGrathNicol, says the deal is “a good outcome for GEON’s east coast business and customers, which has been achieved in very challenging circumstances.
“It is pleasing that Blue Star will offer jobs to a number of GEON staff in Sydney, Melbourne, Parramatta and ACT and we plan to work quickly over the next few days to ensure an orderly transition,” he says.
Blue Star indicates that the GEON facilities it has acquired will be closed down, with the operations to be integrated into Blue Star’s existing operations in the NSW and Victoria regions. While it is not yet clear how many GEON jobs will be lost in the integration, Blue Star says it will retain a ‘meaningful’ number of staff.
Reports indicate that up to 460 jobs across the two states could be at risk in the sale and subsequent integration.
According to Selig, GEON CEO Graham Morgan is joining Blue Star to help oversee the integration of the two companies’ operations. It is not yet clear whether this will be a long-term or short-term appointment.
In a statement, Blue Star said:
Blue Star do not intend to continue operating at GEON’s current facilities moving forward, and will over the short term undertake a managed integration of the relevant operations into the existing Blue Star operations in NSW, Victoria and the ACT.
“A meaningful number of existing GEON employees will be offered employment with Blue Star as part of this integration.”
Selig says that, “the acquisition of these selected GEON assets provides us with a unique opportunity to bring together two outstanding businesses that have been built on extremely high levels of customer service, responsiveness, a diverse product offering and exceptional quality.
“It also enhances the sustainability of our existing operations to further support ongoing high levels of investment across our business. We are delighted to have the opportunity moving forward of working with a meaningful number of talented and committed GEON employees,” he says.