IGL -0.82%: Yesterday the company announced they had bought the majority of the printing and finishing assets of Ovato from the administrators. Ovato had previously been a major competitor and at one point they were doing $500m in revenues, however a bunch of factors sent them down the gurgler. Their demise cements IGL as the number 1 player in the printing space and gives the group pretty much every major retailing and bluechip customer in Australia. IGL has flagged that post integration OVT assets would be expected to generate ~$160m in revenue, $28m in EBITDA at a margin of 18% and $15m in underlying NPAT. It’s been a tough few years for the sector, and IGL could have easily followed OVT out the back door (probably saved to come degree by Govt support) but their management team have also done a great job.
MM remains bullish IGL
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