OPUS uses McPherson to gain ASX listing

Business services and communication company, OPUS Group, is set to mount a reverse takeover of McPherson’s Printing Group, with the new entity to be floated on the ASX early next year.

The move will follow the demerger of McPherson’s Printing Group from parent company, McPherson’s Limited, which was proposed this week at the company’s annual general meeting. A successful outcome will see the new ASX-listed McPherson Printing Group emerge as a major powerhouse player in the region.

McPherson’s printing has also stepped up with the latest highspeed inkjet press to go into the industry. The engine, likely to be a HP T400, will be commissioned early next year.

The merger is planned to be by way of an issue of shares in McPherson’s Printing Group to the shareholders of OPUS, with McPherson’s shareholders owning approximately 30 per cent of the combined group following the acquisition, giving OPUS the controlling share of the new company.

“This [merger] ticks a number of boxes for us,” said OPUS Group CEO, Cliff Brigstocke. (pictured) “It’s a shorter timeline to a public listing, McPherson’s is a large company and it is a perfect combination for us whilst achieving a pubic float.”

The acquisition of McPherson’s Printing Group will be another step on OPUS Group’s path to expansion into a multi-channel communications solutions company, with particular focus on emerging digital technologies. Further acquisitions are expected following the listing.

“This gives us the scale to continue developing the technology in the business,” said Brigstocke. “Being a publically listed company will give us the possibility for funding.

“It’s important that we do a lot more than print. We’re [focusing] very much on adding digital, logistics and business services to the printing group.”

The separation of McPherson’s Printing Group from its parent company will see McPherson’s Limited become a company focused exclusively on consumer products, while the printing group, combining forces with OPUS, will provide enhanced business services and communications solutions.

McPherson’s offering to OPUS comes following an 8 per cent revenue drop in its printing group last financial year, with earnings of $2.9 million – well below the previous year’s $3.8 million.

While a conditional contract drawn up between the two companies will see the new company operational in Australia, New Zealand and Singapore, the merger remains subject to shareholder approval. The vote is expected to take place in March next year.

Both OPUS and McPherson's are important book printers as well as digital production companies. The new entity will be a major competitor to all book printers in Australia and the region.