Pro-Pac Packaging (Pro-Pac), the flexibles and industrial packaging manufacturer has increased its HY revenue following its acquisition of Integrated Packaging Group (IPG).
With a revenue of $158m for the 1HY18, the company has improved on its prior corresponding period (pcp) result by $42m. This includes two months of trading for IPG, which it acquired in November. On a standalone basis, revenue for Pro-Pac came to $121m, a $5m improvement from the pcp.
Underlying profit before tax for the group was $5.95m, after adjusting for $9.9m worth of one-off items from the IPG acquisition and its resulting rationalisation, relocation costs.
Pro-Pac says it is now emerging as a world class flexible and industrial packaging manufacturer and distributor with no geographical constraints.
The printing industry’s former bête noire Ahmed Fahour is the executive chairman of Pro-Pac, having previously served on the board while holding his CEO role at Australia Post. He was bumped up to executive chairman when he left the postal monopoly, following public outcry around his pay, 10x the Prime Minister’s salary.
Former Salmat CEO Grant Harrod is now CEO at Pro-Pac, he says, “The merger with IPG has strengthened our focus in the high growth flexible packaging sector, providing Pro-Pac with an opportunity as both manufacturer and distributor. The business can now provide clients with a total packaging solution by combining IPG’s extensive local manufacturing capability and product innovation skills with Pro-Pac’s global sourcing capability as a major packaging distribution business.
“We plan to further expand our offering into growth markets such as food processing, agriculture and horticulture packaging. All require local processing supported by an increasing requirement for flexible packaging, driven by consumer demand for greater product freshness and portion control.
“The integration of IPG and Pro-Pac is well underway, with management focused on the rationalisation, consolidation and optimisation of the two businesses. We are on track to exceed the $2m in annualised synergies as previously announced.”
The company says its board is undertaking a strategic review of its Rigid business division.
Harrod notes, “The merger of IPG allows us to establish a new growth platform into the highly fragmented flexible packaging market, where PPG has the opportunity to consolidate and become a market leader.
“We have a strong M&A pipeline of bolt-on opportunities, and are in advanced discussions on a number of these.”
The company says it remains on track for an annualised sustainable EBITDA, including synergies, of $37.7m.
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