SYDNEY, AUSTRALIA: Salmat Limited has entered into an agreement to sell its Marketing Solutions business to a wholly-owned subsidiary of IVE Group Limited for $25 million cash.
Under the terms of the agreement, completion is scheduled to occur on 1 January 2020, subject to the satisfaction of conditions precedent. As part of the transaction, IVE Group will also acquire all of the shares in Salmat subsidiary Reach Media New Zealand Limited, which operates a catalogue distribution business in New Zealand.
IVE Group will provide transitional support services to Salmat, including the Micro Sourcing business, post-completion until final separation takes place. The decision to sell the Marketing Solutions business followed a comprehensive industry review process undertaken by Salmat’s management and Board, looking at strategies to address sustainability in the catalogue distribution network.
Salmat CEO Rebecca Lowde said “Having considered a number of alternatives, we believe that the IVE proposal represents the best available option for employees, clients, shareholders and the Marketing Solutions business as a whole in the current market.
“The change in ownership will bring together our market-leading catalogue distribution business with the complementary print, data and marketing offering of the IVE Group. IVE is committed to continuing Salmat’s innovation strategy with further investment to support the ongoing sustainability of the distribution business.
“As we work towards sale completion, we are also now considering the best future options for Salmat and the Micro Sourcing business. We will keep the market updated regarding any material decisions,” said Ms Lowde.