Postie Plus looks north with Classmates

Listed retailer Postie Plus is buying EziBuy's Classmates division to expand its school uniform business.

Chief executive Ron Boskell said the company had a solid market share of school uniforms in the South Island through its SchoolTex brand but the Classmates acquisition would bolster its presence in the North Island.

"We had been looking for a way to expand into the larger northern market," said Boskell. "What Classmates provides us with is some dedicated schools where they have contracts and an opportunity for us to be able to take over that business."

The cash deal, for an undisclosed sum, is effective from today.

Christchurch-based Postie Plus owns the Postie Plus, Arbuckles and Baby City chains.

Boskell said SchoolTex made up about 15 per cent of Postie Plus business.

"The reason for the success in the South Island really started with the fact that that was where our business was," said Boskell. "The same has started in the North Island. We are happy with our growth, but this just provides the cherry on top."

Privately owned EziBuy was developing other business areas and said Classmates no longer formed part of its core business.

Shares in Postie Plus closed up 1c yesterday at 86c.