IPMG shareholders own collectively 100% of IPMG Group and include members of the Hannan family
PMP Limited announced on Friday it has entered into an agreement to merge (“the transaction”) with IPMG Group (IPMG), a print and digital services provider, privately owned by members of the Hannan family.
IPMG shareholders own collectively 100% of IPMG Group and include Michael Hannan 25.6%, Lindsay Hannan 49.6%, and Adrian and Richard O’Connor 24.8%.
On completion of the transaction PMP will acquire 100% of IPMG and will issue new PMP shares to the IPMG shareholders who together will hold a maximum 37% interest in PMP (equating to a consideration value of approximately $119m). IPMG will be entitled to nominate two directors to the PMP Board. The transaction is subject to closing conditions including approval at a meeting of PMP shareholders scheduled for Friday 16 December.
IPMG proposed a merger with PMP way back in 2001 that valued IPMG at the time at $250m when the business was owned by the Hannan family and John B Fairfax.
PMP has appointed Grant Thornton to prepare an Independent Expert’s Report on whether the transaction is fair and reasonable for PMP Shareholders.
IPMG is a long established print and digital services provider operating in Australia. IPMG operates through various businesses including Hannanprint, Inprint and Offset Alpine. On a pro-forma basis IPMG generated approximately $362m of revenues and $21m of normalised EBITDA for the 12 months ended 30 June 2016.
The most recent BRW Rich Families list had the Hannan Family at $410m, down from $613m in the previous year. However the family has cashed up big time in the past few years. Among the asset sales were newspapers and magazines to News Corp Australia 10 years ago for $500m, the Sydney Corporate Park site for $343m in 2013 and now its printing business for $119m of PMP stock.