Resins maker Nuplex Industries said yesterday that the newly acquired Viverso would make a positive contribution to its earnings in the current financial year to June 30, 2012.
Nuplex said earlier it had agreed to buy Germany's Viverso, and its related operations and product groups, from Bayer MaterialScience for €75 million ($130 million) in what would be a wholly debt-funded transaction.
Nuplex said it had secured an additional debt facility of A$100 million ($130 million), which would increase its total debt facilities to A$300 million, and that it was looking at converting some of it into long-term debt through the US private placement market.
After completion, Nuplex's net debt will be about $210 million, according to the company, taking its gearing ratio to 27 per cent from the June 30 level of 12 per cent.
Chief executive Emery Severin said volumes were expected to be similar to last year's, but the recent strengthening of the New Zealand dollar was likely to have the biggest negative impact on earnings.
