In an exclusive interview with Australian Printer, Orora CEO Nigel Garrard has discussed the company’s US plans, following its second significant acquisition in the second half of 2018.
The company invested $110m to purchase Pollock Packaging in November, after buying Bronco Packaging Corporation for US$24m ($33m) in late August.
Bronco is a 20 year old company, which serves corporate accounts in the fresh food manufacturing industry, and generates revenues in excess of USD$50 million. The company was family-owned prior to the purchase, employing 30 staff, while the owners have agreed to stay on for three years.
Commenting on the decision to target the US state, Garrard says, “Texas is the second biggest market in North America, with a higher GDP than Australia.
“Bronco and Pollock give us a good lift in our size and ability to offer work to customers in Texas. The combined acquisition adds $400m to our sales in Texas, and gives us a nice boost to grow.
“For our acquisitions, we are looking at both geography and capability. We are a strong player in California, and are looking to grow in regions outside of California to better service our national customers.
“The growing regions of Texas and Georgia are key areas.”
Orora has operated in the US for some 20 years, and with its latest acquisition, now has $2.3bn in sales annually, with 4500 staff in the country.
In August 2017, Garrard led the company in combining four individual businesses into Orora Visual, focusing on the POP market. The combination followed from acquisitions of two of the four companies, Graphic Tech and Garvey Group, in a deal worth $71m.
On how the process is going, Garrard says, “Integrating four businesses into one is never easy but I am pleased with the way that is going with the response we are getting from our customers. It is a little behind where we would like it to be from a process point of view, but it is delivering what we expected.
“For our point of purchase business, the Nozomi offers high-quality print, and the press is installed in Los Angeles. Orora has manufacturing locations in the north and south of California.”
As for investment in the local market, Garrard notes, “In Australia, as a generalisation it is quite consolidated, which limits the ability to do acquisitions. We have been a heavy investor in manufacturing over the last three to four years, adding capability and capacity in our plants. We see good opportunities to grow the business.”
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at [email protected]
Sign up to the Sprinter newsletter