KEY POINTS:
Freightways has bought Brisbane-based document destruction operation Document Destruction and Paper Recycling (DDPR) for A$3.5 million ($3.9 million).
The acquisition was consistent with its strategy of increasing its presence in the Australian information management market, Freightways said today.
DDPR's operations would be merged into those of another Brisbane document destruction business, Shred-X, which Freightways announced it had bought for up to A$8.7 million earlier this month.
That merger would further strengthen the presence of Shred-X in the Queensland market, Freightways said.
The acquisition of DDPR would be funded from Freightways' existing finance facilities.
Incremental annual earnings before interest, tax, depreciation and amortisation of $800,000 were expected to be generated from the DDPR acquisition, following the merger of operations with Shred-X and realisation of synergies.
Freightways shares were down 4c by late morning today to $4.06.
- NZPA
