It is unclear if Fujifilm made the initial “unsolicited and conditional approach” for the Business Process Outsourcing (BPO) division announced on 31 May – a Salmat spokesman would only tell ProPrint that the first approach had triggered a “full sale process” that generated “considerable interest from multiple parties”.
Salmat said the BPO division would be “better suited to an owner with global reach and broader outsourcing ambition”.
The company said the divestment marked the beginning of a broader partnership with Fujifilm that would exploit the parties’ geographies and services.
“For Salmat, this is a potential opportunity to drive growth by bringing our customer communication services and solutions into the Asian market with a highly credible provider.”
The deal, which is subject to approval by the Foreign Investment Review Board, is expected to be completed in mid-October and includes an 18-month transition agreement.
BPO provided 38.4% of Salmat’s revenue in 2011-12, making it the company’s largest division.
In the 12 months to 30 June 2012, BPO’s revenue had a 0.8% year-on-year fall to $316 million, although underlying earnings before interest, tax and amortisation (EBITA) rose 18.4% and margins improved by 2.6 points.
Mail pack impressions climbed 2.8% to 3.6 billion, mail pack volumes rose 0.1% to 1.1 billion and e-documents jumped 28.2% to 100 million.
Meanwhile, the company announced an overall fall in net profit of 15.8% to $30.3 million, a 4.6% fall in revenue to $823 million and a 6.5% improvement in net debt to $242 million.
Targeted Media Solutions (TMS) enjoyed a 9.7% rise in revenue to $275 million and contributed 33.4% of company turnover.
Salmat forecast a rise in catalogue volumes from 400 million to 1 billion within five years, although 2012-12 saw a fall in catalogue EBITA due to lower margins and restructuring.
Chief executive Grant Harrod said Salmat had a “consistent long-term growth strategy” that would see it become “Australia’s leading omni-channel communication partner”.
Salmat said its traditional business was in a strong position because it occupied “leading market positions” and was protected by “high barriers to entry in major markets”.
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