PaperlinX CEO Toby Marchant is leaving the company. In addition, the firm announced it has entered into the following agreements:
- to sell its operations in Slovakia, Hungary, Slovenia, Croatia and Serbia to the Heinzel Group for €19.6m. The sale price represents a multiple of approximately 10x EBITDA and is A$2m above book value. Net proceeds after debt and transaction costs are expected to be approximately €17.5m (A$21m);
- to sell its loss-making operations in South Africa to local management. Net proceeds of ZAR50m (A$6m) will include A$3m repayment of parent company funding and A$3m purchase consideration for the shares, representing a loss of approximately A$2m against book value.
