Melbourne-based packaging giant Orora has signed a definitive agreement to acquire US POP display provider The Register Print Group in a deal worth A$59m.
Orora CEO Nigel Garrard tells Australian Printer the acquisition is in line with the company’s growth strategy in the Point of Purchase (POP) display market. The company first entered this market in March with the takeover of Texas-based IntegraColor.
Garrard explains, “Since March we have looked at the market and have come to the conclusion that we see an opportunity for a national POP business.
“With IntegraColor based in Dallas, we have been focusing on opportunities in America’s north east and mid west to enable us to put together a national network of POP and this acquisition is the next step in this strategy.”
Register will not be Orora’s final purchase, with the company already looking at further opportunities.
At present the company will keep its branding, however as Orora grows its business in the US this is likely to change.
Garrard adds, “As we acquire more POP businesses we will consider a new branding strategy, as it makes sense to have one brand across our POP business. We will explore this as we go into 2017.”
Located in Clifton, New Jersey, Register is a family owned business which has been established for the past 40 years.
It operates from two adjacent facilities and employs approximately 100 staff servicing a large customer base of blue-chip corporates mainly from the telecoms, retail, beverage and cosmetics sectors.
Register services the full POP value chain, with capabilities in concept development, design, high quality/digital printing on multi substrates, manufacture and fulfilment services.
The company has seen sales growth in excess of five per cent per annum over recent years, and Orora says synergies of more than A$2m are expected to be realised within the first two to three years after purchase.
Garrard confirms the business will continue operating from the two current facilities and says there will be no staff cuts as a result of the acquisition.
The current management team will also remain in place under the leadership of former IntegraColor owner and CEO of Orora’s POP business, Larry King.
“The premise of this acquisition is we are buying a successful, growing business with a strong management team and that has made Register an obvious addition to the Orora team,” he says.
“We bought this business to grow, not shrink and there is certainly no staff cuts due to this.”
The acquisition represents a multiple of 5.8 times Orora’s last 12 months EBITDA. The deal is expected to go through in January.
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