Hexagon was established in a joint 50:50 partnership with our Blue Star shareholder Tom Sturgess, a couple of years after the acquisition of Blue Star. Mercury identified the label printing niche as a distinct and attractive segment with fundamentally different drivers to the broader commercial print industry, after being exposed to this segment with a small label printing business that existed within the previously acquired business Blue Star Print Group. Shortly after acquiring Blue Star, a second label printing business was rapidly acquired out of an insolvent parent. Hexagon was ultimately established in 2014 with Blue Star vending in its two label printing businesses, and Tom Sturgess vending in a separate label printing business he privately held.

At inception, Hexagon comprised three label printing businesses with ~$45m in revenue and was positioned as one of the three largest operators in the NZ market, with a strong position in NZ wine label printing. The label printing industry exhibited positive tailwinds, owing to increasing focus on ingredient listings, packaging innovation to support new product development, and in particular strong demand drivers for NZ wine exports in the US market. Additionally, the label industry in NZ was wholly characterised by private and long-held family-owned businesses, representing further industry consolidation potential.

Immediately upon establishing Hexagon as a new corporate participant in NZ, Mercury began engaging with the number one and two participants in the market, resulting in the acquisition of both businesses over the coming 18 months. Hexagon now comprised over half the NZ market label industry, and of note, a much higher share of the wine label printing market. Hexagon was also now the number four label printing business in Australia.

Over the ensuing years Hexagon carefully executed an organic growth strategy. A corporate office was established, two plants were rationalised and consolidated, industry vertical-focused business development plans supported strong top-line growth, and the previously acquired Australian businesses were consolidated and established with a plan to become the number three participant. From inception, with the combination of three small businesses, Hexagon was now turning over close to $200m with ~500 employees and was the largest label printing business across Australia and New Zealand.

A proprietary sale process in 2021 after an approach from US private equity-backed industry participant Multi-Color, one of the top two global participants operating in Australia, resulted in a sale of the business and an incredible journey building Hexagon was resolved with outstanding equity returns for all shareholders.