After completing the sale of both its United States and Italian operations over the past couple of weeks, PaperlinX of Australia, has now announced agreements to sell its operations in Slovakia, Hungary, Slovenia, Croatia and Serbia to the Heinzel Group for €19.6 million.
PaperlinX also signed an agreement to sell its South Africa operation to local management for net proceeds of around €5 million. Both of these acquisitions are expected to close within the next three months.
“After the sale of five smaller European businesses and the consistently loss-making South African business announced today, our remaining businesses all operate in sizable markets with significant market positions,” stated Toby Marchant, CEO of PaperlinX. The company’s sell-off over the past several months is based on what executives refer to as a now completed 12-month Strategic Review.
As such, Marchant announced this is an appropriate time for him to step down as CEO of the company. “We have reached a major turning point in the transformation of PaperlinX,” he stated, “and the Board and I have agreed that it is an opportune moment for me to step down as Chief Executive. I will therefore be leaving the company at the end of July.”
Dave Allen, who joined PaperlinX in 2004, is to become the Interim Chief Executive of the company. He is currently Executive VP of PaperlinX with responsibility for the UK, Ireland and Canada.
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