Australian packaging firm Pact Group is entering the lucrative pharmaceutical market after acquiring Australian Pharmaceutical Manufacturers (APM) in a deal worth $90m.

Currently owned by Jeremy Cutts, APM was established in Melbourne in 2002 and has 130 employees which produce a range of pharmaceutical products such as vitamin and mineral supplements, herbal remedies and amino acids.

APM also possesses its own packaging, tableting and encapsulation technology.

Pact managing director, Malcolm Bundey says the deal was made due to the ‘robust growth’ the ‘attractive’ pharmaceutical sector is experiencing in both the domestic and export markets.

The deal will be funded by $75m of bank debt and a $15m equity placement. The acquisition is expected to be completed by September 16.

In Pact Group's full year results announcement last month, revenue rose to $1.3bn compared to $1.2bn in FY2015, and EBIT surged seven per cent to $162m.

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