Pro-Pac buys Perfection in $58m spree

Pro-Pac Packaging is acquiring Melbourne based Perfection Packaging for $49.8m, the acquisition anticipated to be complete in September, with the company saying it is adhering to its strategy of high growth in the flexibles market.

Perfection Packaging is 40 years old, and claims to be Australia’s largest independently owned flexographic printer.

Pr-Pac is also buying soft flexible packaging manufacturer and distributor Polypak NZ in Auckland for $8.2m in  adeal that will be completed later this month.

The move follows Pro-Pac’s $178m purchase of Integrated Packaging (IPG) in November last year. Pro-Pac total revenue for last financial year was $229m, this excludes any IPG figures.

Grant Harrod, CEO of Pro-Pac says, “The FY18 year has been a period of substantial transformation as the company establishes itself as a leader in the industrial and flexible packaging sector.

“The company is now well advanced in the integration of the IPG acquisition it completed recently and it will benefit further from both synergy savings and new growth opportunities with Perfection Packaging and Polypak acquisitions. Both acquisitions further strengthen our growth strategy, in particular expanding our reach into the higher growth food based primary packaging market.”

Further details of the acquisitions, such as what will happen to each company’s site, equipment and staff are yet to be made clear.

Perfection, which started in 1978, has four flexographic presses, three solvent-less laminator and four high-speed slitter rewinders. The company offers a range of flexible packaging solutions for the FMCG (fast moving consumer growth) industry, including food, health and personal care.

It has operated out of its purpose built factory in Dandenong South, since 2001. Last year, it increased its manufacturing and warehousing space from 6000sqm to nearly 10,000sqm.

NZ based Polypak has been operating for more than 35 years.

Ahmed Fahour, Pro-Pac chairman says, “The acquisitions of Perfection Packaging and Polypak represent a further significant milestone in Pro-Pac’s vision to become the flexible and industrial packaging manufacturer and distribution leader in Australia and New Zealand.

“I take this opportunity to thank existing shareholders for their continued support and to welcome a number of new institutional and retail shareholders to the Pro-Pak register as we begin this journey.”

Pro-Pac has updated its outlook for FY18, saying it expects to generate an underlying EBITDA around $16m.

The company’s leadership has been boosted in recent years with the appointment of former Salmat CEO Grant Harrod and former AusPost chairman Ahmed Fahour.

 

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