Australian packaging company Orora Limited is furthering its reach into North American markets with the acquisition of Texas based Pollock Packaging for $US80.5 million ($A110m).
Pollock Packaging has been in operation for 100 years and mainly serves the industrial, retail and facility supplies markets and employs more than 440 people with annual revenues in excess of US$250m million.
The acquisition represents a multiple of 8.7 times trailing earnings before interest, tax, depreciation and amortisation (EBITDA).
The purchase increases the business of Orora Packaging Solutions (OPS) in North America, while also boosting its geographic presence across several US states, including Georgia, North Carolina, New Jersey and California.
The deal also enhances Orora’s existing customer offering, particularly in the growing facility supplies market segment.
Pollock also operates a corrugated box manufacturing plant and in house packaging design service in Dallas, Texas.
Orora managing director and chief executive officer, Nigel Garrard says, “The addition of Pollock to OPS’s business provides a scale platform to leverage the capability and customer reach of both businesses to continue to drive sales growth with existing and new customers.”
“In addition to a strong core packaging solutions offering, Pollock brings a well-established facilities supplies business that will give OPS the platform it needs to expand in this key market segment and Pollock’s customer base will benefit from access to OPS’s broader supply portfolio and geographic footprint.”
“The Pollock management team has a strong track record of proven performance and will remain with the business to support integration of the two businesses and delivery of anticipated synergies.
“Pollock aligns with Orora’s stated returns focussed approach to allocating capital, as was the case with the acquisition of Bronco Packaging in August 2018.”
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