Former Vertex managing director emerges with a smile

Vertex's former managing director Paddy Boyle. Picture / Glenn Jeffrey

Although his career at Vertex ended abruptly last week with the success of the $67 million takeover by the Stewart family of Christchurch, Paddy Boyle is glad to turn the page on the boardroom scrap, legal battle, hostile takeover and the personal mud-slinging that has dogged him and the company over the past eight months.

"I'd been spending every waking moment thinking about Vertex, what was happening and where it was going," he says.

It was several days before the finality of it all sank in - at 1am in the morning.

"I just woke up and thought, it's over. It really has happened."

He says he now feels like a gladiator, facing sudden calm at the end of a battle.

The open-mindedness he considers a strength he brought to the company is now helping him put the episode behind him, and start a new chapter in his life.

He's had several job offers, one from across the Tasman, ranging from chief executive roles to board positions, and he's taking advice on his options.

But before making a decision, he wants to take a complete break and spend it lying on a beach in Fiji.

He could fill a book with stories of his 6-year career at Vertex, which has taken him through the sale of the business by Carter Holt Harvey to Private Equity Partners in 2000, its listing in 2002, a profit downgrade two months later and subsequent recovery, and now the hostile takeover.

"I've got most of the T-shirts," he says. And the battle scars.

"It certainly has been very tough."

This week Boyle's been showing the company's new owner, Mark Stewart, formerly a director and painted as his enemy throughout the saga, through Vertex factories.

Boyle objected to Stewart's appointment to the Vertex board when his family's investment vehicle Masthead bought into the company last year, as they already had a cornerstone stake in rival company Alto Plastics.

With independent direct Sandy Maier he attempted to have the three Masthead directors removed from the board, alleging a conflict of interest.

"It was simply unacceptable having three Masthead-nominated directors on a board of five.

"We had to fix that."

Hostility between the two factions was eased when the High Court appointed accountant Tony Frankham interim chairman in December.

Boyle's legal action was called off in March when Masthead launched its takeover.

Boyle says he was half expecting the bid to come, and thinks Masthead made the right move under the circumstances.

"I thought it was fair because it flushed them out and it then became a public process of determining value and control, rather than a boardroom one."

The saga highlighted the challenge of dealing with a competitor on the board, something he thinks could be solved by appointing a high-quality proxy director to represent them in proportion to their shareholding.

"We've proved you really can't live with competitors on the board."

He didn't allow personal attacks made during the saga to get under his skin.

"My wife and kids were more irritated than me."

The ice between the pair has been thawing since Boyle accepted Masthead's revised $2.09-a-share offer at the end of April, pocketing $1.3 million for his 1.9 per cent stake.

He knew that it was career limiting at the time, but thought the price, raised from an earlier $1.90 a share, was fair given the softer market, a general economic slowdown and the unlikelihood that a bigger offer would come through.

Last week he lifted the question mark over his future in the company after meeting with Stewart at Vertex's Albany office.

"He obviously wanted me to leave, and I can understand that, so we discussed the detail around that."

Boyle won't comment on the settlement, but has agreed to a restraint on his activity in the plastics industry for a time.

He will also stay on for one month to help the transition to Masthead's ownership, before clearing the desk - and taking the Vertex number plates off his car. The plates will be handed to the company.

He's realistic about the way things have worked out for him in a "financial democracy".

"He [Stewart] bought in and has every right to have a say about what he wants to do."

BUT Boyle is adamant that he was treated fairly under the circumstances. The hardest part is letting go of the vision he was starting to see unfold.

He's seen Vertex transformed from a manufacturer of standard packaging items such as tubs and and meat trays, to an export-led innovator in machine-based packaging.

Exports to Australia broke through $15 million last year and will touch $20 million this year.

Three years ago it didn't export to the United States but this year it can expect to earn $5 million from one of its fastest-growing markets.

Boyle has also seen its debt reduce from $35 million to $20 million since it floated.

"Vertex is a great company that should accelerate and I will be pleased and proud if I see that growth trend continue."

Completion of the takeover has ended Vertex's short stint on the sharemarket.

Stewart's end game to merge it with Alto is looking more likely after this week's appointment of Alto managing director Mark Wheeler as Boyle's replacement.

The move would form the largest packaging company in New Zealand and, with a combined turnover of $150 million, one of the most-significant players in Australasia.

Paddy Boyle

Born in Fielding
University of Canterbury, MA Hons in industrial psychology
Carter Holt Harvey, director of human resources
2000-2005 Vertex, managing director Battle path September 2004: Masthead buys 19.9 per cent of Vertex.
December 2004: Paddy Boyle and Sandy Maier say Masthead directors are on the board illegally due to their interest in rival firm Alto Plastics. Tony Frankham becomes interim chairman to try resolve the deadlock.
March 1: Masthead announces takeover bid at $1.90 a share
April 22: Offer raised to $2.05
April 29: Offer raised to $2.09
May 9: Masthead wins control of Vertex after clearing its 50 per cent target.
May 24: Offer closes after Masthead gains 97.35 per cent of the company.
May 26: Boyle resigns.
May 27: Vertex delisted from the stock exchange.
June 1: Alto Plastics boss Mark Wheeler replaced Boyle.