Troubled printing company GEON has been acquired by former rival Bluestar.
This agreement means the immediate issue with paper supply will be resolved, following reports earlier this week that receivers McGrathNicol pleaded with paper suppliers.
A source that wishes to remain unnamed told Manufacturers’ Monthly that Bluestar plan to close down GEON’s existing facilities in the very near future.
Manufacturers’ Monthly has also been told that some of the GEON workforce will be laid off.
The printing company was placed into administration last week Kohlberg Kravis Roberts and Allegro Funds (KKRM).
KKRM acquired GEON’s debts from Lloyds Banking Group’s BOS International unit last year in a portfolio of distressed loans worth a face value of $350 million. Geon was formerly owned by Gresham Private Equity.
GEON employs over 1,000 people in Australasia and produces catalogues, brochures and magazines, including Manufacturers’ Monthly.
Bluestar was GEON’s main competitor in the sheet-fed printing space