The move, put forward in August when the company reported a A$392m (£183m) loss for its financial year to 30 June, was approved at Paperlinx’s annual general meeting (AGM) in Australia on Friday.
In his address to shareholders chairman Robert Kaye, who was returned as chairman at the AGM, said worsened trading conditions in Europe had hit profitability in its European businesses but that the Australia, New Zealand and Asia (ANZA) businesses had remained profitable.
This, he said, prompted the withdrawal from Europe and the decision to divest the Canadian business.
Paperlinx’s last European outpost, in Germany, went into administration last week, just short of seven months after most of Paperlinx UK plunged into administration.
In that time other operations in Europe either entered administration or were sold.
The company already trades under the Spicers name in the ANZA region.
Kaye said viable Spicers businesses in Australia, New Zealand and Asia gave “a profitable platform from which to become a broader wholesale and distribution business” focusing more on sign and display and packaging.
“The ANZA business is profitable and viable and represents a solid platform for further growth. He added: “Continued diversification is essential to future sustainability.”
Managing director and chief executive Andy Preece said the company’s sign and display and industrial packaging segments had revenue of $60.8m in the 2015 financial year, up 33% on 2014.
The company’s immediate focus is to develop ANZA business through organic growth and acquisitions, and has targets identified in Australia and New Zealand.
Kaye called it “a fresh start to transform into a broader wholesale and distribution business”.
At least at first Spicers will be a much-reduced business from Paperlinx, with 460 staff operating out of 23 sites in seven Australasian countries.
In a count on 30 June 2014, Paperlinx had 3,459 employees, 14% of which were located in Australia, New Zealand and Asia, 72% in Europe and 14% in Canada. It opertated in 11 Euopean countries.
