Promentum grabs #1 spot in QLD with Scanlon takeover

The purchase brings Promentum's revenue in Queensland to approximately $37 million, with the company now pegging itself as the leading sheetfed provider in the state. The Penfold Buscombe, Scanlon Printing and Octane businesses will continue to operate from their separate sites while a plan is developed to progressively integrate their operations where appropriate.

Tony Scanlon, managing director and founder of Scanlon and Octane, will become general manager of Promentum's combined Queensland print operations. He has operated Scanlon Printing since 1993. Octane is a more recent venture that combines digital and offset production.

Alistair Hill, managing director of Promentum, says the acquisition will provide the company with an excellent scale in Queensland, which he identifies as an under-performing area for its operations.

“We are confident that our leading market position, technology and expertise under Tony's leadership will provide a boost for Promentum's earnings and a superior level of service to our major Queensland customers,” says Hill.

“The acquisition provides Promentum in Queensland with a significant boost, successful management expertise in one of the country's fastest growing states, as well as scaleable production capacity and lower operating costs,” he says.

Promentum expects that efficiencies in operations and economies of scale from the combined group will be generated over time. It claims both businesses fit well with its established Penfold Buscombe operations in terms of equipment, technology and service offerings, and says they will contribute additional annual revenues of more than $15.5 million.

Promentum purchased the sheet-fed assets and clients of PMP in 2004, and in Queensland integrated these businesses into a massive production facility between Brisbane and Southport. The new acquisition gives Promentum an impressive offset production facility in Brisbane, while Octane will provide it with an immediate digital printing presence in the state.

“We are in a strong position to continue our leading role in the inevitable, continuing rationalisation of the Australian printing industry, as scale and investment in new technology and equipment is required constantly to stay competitive,” says Hill.