SIG Combibloc has secured a deal to acquire Visy Cartons from VisyPak Operations, a subsidiary of Pratt Consolidated Holdings, for AUD 70 million ($48.2 million).
Visy Cartons currently produces SIG aseptic cartons under licence from SIG for sale in Australia and New Zealand.
The company generated revenue of AUD 84 million ($57.9 million) in its fiscal year ending June 2019, of which approximately 80% was from the sale of SIG aseptic cartons.
According to SIG, the profitability of Visy is expected to increase with the realisation of “significant synergies” arising from supply chain optimisation and access to SIG’s technologies and solutions.
There is also scope to expand Visy Cartons to New Zealand, where it currently has a very limited presence.
The acquisition will enable SIG to support its existing customers in Asia that have invested in or partnered with players in Australia and New Zealand.
“We are very pleased to welcome the management and employees of Visy Cartons to SIG after many years of collaboration,” said Lawrence Fok, president and general manager of SIG Asia Pacific.
“Visy has an excellent team with a proven track record and together we will work to ensure that customers in Australia and New Zealand enjoy excellent service and access to our leading technologies. We plan to leverage our broad product portfolio to tap into the New Zealand market.”
Adam Lipscomb, who will remain general manager of Visy Cartons, added: “We are delighted at becoming a member of the SIG family and are looking forward to pursuing growth opportunities from a strengthened position with expanded product and geographic opportunities.”
The transaction is expected to close in the fourth quarter of 2019.
In July, SIG announced plans to build a €180 million packaging production plant in Suzhou, China, as it aims to bring new packaging concepts to market.
© FoodBev Media Ltd 2019