U.E.B. bids $1.2M for Fibre Containers

Press, 16 July 1979, Page 12

U.E.B. bids $1.2M for Fibre Containers

U.E.B. Industries, Ltd, are making a take-over bid for Fibreboard Containers, Ltd, worth SI.2M. The move will give U.E.B. a captive market of between SIM and S2M, and also add a very modern plant to its productive capacity in the South Island.

Fibreboard Containers has a capital of $300,000, and shareholders’ funds of about $BOO,OOO. These include a modern two-colour in-line flexible board - converting machine, the only one if its type in the South Island, which is in the books at $190,000 but worth at least $500,000. Fibreboard Containers

has built up a good market, for its products in the 11 years it has been operating.! Customers include Dominion | Breweries, Apple and Pear! Board, freezing companies,! P.D.L., and Skellerup—the! latter two are also ‘B’ share-j holders. If the move is successful, it is likely to bring about major changes in packaging distribution patterns in the South Island. At present, Alex Harvey Industries, Ltd owns and operates the only cardboard corrugator in the South Island, but does not convert its product into packaging. There are four converters operating in the South Island: Printing and Packaging.

:, U.E.8., Fibreboard Containers, and Amalgamated .! Packaging, Ltd —now a subsidiary of Carter Holt Holdlings, Ltd. .1 If U.E.B. is successful in jits bid for Fibreboard Containers, Ltd, and then were to install a corrugator, (an . operation likely to cost SIM) : A.H.I. might be left with few ; customers for its board, and : the “Hygrade” division might, have difficulty to survive. Fibreboard Containers, Ltd, I was formed 11 years ago by I a number of Canterbury i growers who were dissatisL tied with the service and design of the packaging then ; available; its products proved popular and the firm grew rapidly to its present size.