Key points
- NZME finalizes agreement to acquire Stuff's Petone plant equipment
- Total investment expected to be up to $15 million over two years
- Acquisition expected to deliver annual operating savings of $7 million
- New equipment to be installed at a new facility by end of 2028
Full summary
NZME Limited announced the acquisition of Stuff's Petone plant equipment to maximize future profitability of its print operations. The total investment is expected to be up to $15 million over two years, with cashflow payback within three years. The acquisition is anticipated to deliver annual operating savings of around $7 million, subject to print volumes, once installed. The equipment is more efficient and about a third of the size of NZME's current plant. This acquisition will also provide NZME the capability to offer third-party print options throughout the North Island.
Guidance
NZME expects annual operating savings of $7 million post-installation of acquired equipment.
Outlook
NZME anticipates the acquisition will ensure future sustainability and reliability of its print operations.