Hally chief executive Trevor Kamins said the deal would give the trans-Tasman group a 12-15% boost in turnover and reduce competition.

AC Labels is based in Sydney, employs about 50 staff, runs four flexo presses and also has an HP Indigo 4500 and an Indigo 6000, said Kamins.

He told ProPrint that the Indigos were a key motivation for the acquisition. There are no digital printers at Hally's Australian manufacturing hub in Brisbane, although the group does have digital capacity in New Zealand.

Kamins said Hally had also wanted a manufacturing, warehousing and distribution presence in Sydney to service clients in Sydney and Melbourne.

Hally has also gained access to AC Label's pharmaceutical business, a sector the group has been trying to grow, he added.

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The deal became official on 1 May. AC Labels will continue trading under its own name. Kamins said all staff had been offered jobs and that there were no plans to restructure the firm.

Kamins said the synergies between the two companies would help both of them grow.

"There will be support going both ways. Growth in volumes creates purchasing synergies as well. Hally's supply chain and pricing advantages are automatically put into the AC business," he said.

"We have a reasonable pipeline of additional work coming through and we intend to utilise the capacity in AC to support that growth."

He said that included a "significant account" with food manufacturer Cerebos Greggs that Hally won in March.

Kamins told ProPrint that Hally planned to consolidate its new acquisition, and would then seriously consider buying other businesses in Australia and New Zealand.

Hally has about 85 staff in Australia and 110 in New Zealand, with both operations generating similar revenue, said Kamins.

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