The $5m acquisition almost tripled its market share from 11.2% to 31% to and includes all but one of CHH’s sites in Australia and New Zealand. The Smithfield site went to rival Amcor.

Colorpak and Amcor are now neck and neck in terms of market share in folding cartons, with Amcor expected to have a 31% share when it finalises the Smithfield acqusition.

Colorpak managing director Alex Commins said consolidation underpinned the company’s growth strategy.

“Colorpak has gone from strength to strength since floating in 2004, acquiring and integrating five businesses over the past 12 years and staying true to its vision to be the creators of the most outstanding packaging in Australia,” he said.

The company expects to see a revenue spike from $80m to $210m for the financial year ending 30 June 2012.

The deal was funded by existing cash and debt facilities and has resulted in Colorpak acquiring all the operating assets and liabilities of CHH’s business including plant and equipment, working capital, leases and employee entitlements.

Commins’ said: “The integration of CHH’s operations into the Colorpak business gives us the platform to build our market leadership in this sector.”

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter