Takeover specialist Mark Shergill of Focus Print Group has signed a deal to acquire failed Sydney printing icon Sydney Allen, which collapsed into receivership last month.
After a two-week sale of business process conducted by CRS Insolvency Services, Shergill prevailed against several other bidders, including Mascot Printing, which last month entered into a business licence agreement to keep Sydney Allen's business at Condell Park up and running until a new owner was found.
That agreement ended yesterday when Focus Print signed a sale of business agreement and a licence agreement to take over Sydney Allen. The official handover of the business premises took place Thursday morning. The Sydney Allen name will be retained and Focus has agreed to purchase all of the remaining equipment.
"It's a great result and we're definitely pleased," said Anthony Warner, partner at CRS. "We've exchanged contracts with Focus Print and we're very happy with the sale price. We've also secured the employment of about 20 people who will stay on. We're very grateful for the assistance of Mascot Printing who have cooperated throughout the sale process."
Former Sydney Allen director John Mangos will also stay on with the new business but more than 20 former staff members have lost their jobs.
Focus Print has now completed ten acquisitions since Shergill took over the company in 2014 and launched an aggressive expansion policy.
The terms of the agreement have not been disclosed but Focus released a statement to confirm the deal:
Mark Shergill purchases Sydney Allen
Focus Print Group has again added to its brands by doing a deal with Sydney Allen, which will continue to trade as Sydney Allen.
Mark Shergill has been on the lookout for an A1 machine for some time and the deal secures him 2 Heidelberg’s, both a 10 colour and 6 colour with coater and an assortment of finishing kit.
The business will continue to operate from its Condell Park premises with around 20 staff retained.
Shergill operates from sites in Sydney, Melbourne and the Gold Coast and this opportunity delivers his desire to have A1 machines in all locations to provide additional operating capacity.
Shergill is well versed in acquisitions and believes that there will be a seamless integration with no disruption for clients.
Mascot Printing also released a statement about its role in keeping the business open as the sale was completed:
Mascot Printing entered into a Business License Agreement on 12 April 2016 (BLA) to run Sydney Allen Printers while a restructure or sale of the business was pursued. That process has now been completed and Focus Print Group have entered into an agreement to acquire Sydney Allen.
Mascot’s involvement with Sydney Allen under the BLA ceased Wednesday 4 May at 5pm.
Mascot Printing Managing Director Joe Pizzo said, “I am pleased that Sydney Allen has secured a new owner and that Mascot was able to play a role in keeping the business trading while the restructure took place. We wish the new owners, and current Sydney Allen staff all the best in their future endeavors.” Pizzo went on to say, “On behalf of Mascot Printing I would like to extend our sincere thanks to all customers and suppliers for their support during this period.”