PACT GROUP
Acquisition of Jalco / Deal strengthens presence in FMCG sector
Australian packaging producer Pact Group (South Yarra, Victoria; www.pactgroup.com.au) has agreed to buy FMCG contract manufacturing service provider Jalco (Prestons, New South Wales / Australia; www.jalco.com.au) for AUD 80m (EUR 55m). The sale is expected to be completed by 1 September.
Brian Cridland, Pact Group’s CEO, commented: “We have been a supplier to Jalco for many years, we understand the business and I am delighted to see these two businesses come together. Jalco is an ideal strategic fit as it will allow us to deepen our existing FMCG customer relationships and to enter new areas of growth serving customers in outsourced contract manufacturing and packaging.”
The acquisition, which will be funded through Pact’s existing debt facilities, is expected to generate a return on investment in excess of 20% within three years.
Jalco manufactures goods for leading companies such as Unilever, Energizer and Castrol and has annual sales of about AUD 165m. It operates six sites in New South Wales employing around 500 people.
Brian Cridland, Pact Group’s CEO, commented: “We have been a supplier to Jalco for many years, we understand the business and I am delighted to see these two businesses come together. Jalco is an ideal strategic fit as it will allow us to deepen our existing FMCG customer relationships and to enter new areas of growth serving customers in outsourced contract manufacturing and packaging.”
The acquisition, which will be funded through Pact’s existing debt facilities, is expected to generate a return on investment in excess of 20% within three years.
Jalco manufactures goods for leading companies such as Unilever, Energizer and Castrol and has annual sales of about AUD 165m. It operates six sites in New South Wales employing around 500 people.
23.06.2015 Plasteurope.com [231464-0]
Published on 23.06.2015