Diversified manufacturing and distribution company Pro-Pac Packaging (PPG) has announced the acquisition of the business and assets of Eco Food Pack Australia for an undisclosed value.
Eco Food, which develops and sells food packaging trays for the fresh meat, seafood and poultry industries, has annualized revenues of about $12,000,000 currently .
According to PPG, the expertise and products of Eco Food are a natural extension to its existing product and customer base in the food industry.
The Australian company will be relocated and integrated into PPG's existing infrastructures, providing distribution synergies for the business as well as improved customer service for the customers.
The acquisitions are said to be earnings accretive in FY14 and will be funded from a combination of the group's existing bank facilities and internal cash flows.
PPG CEO Brandon Penn, commenting on the acquisition, said, "The purchase of the Eco business is a strategic acquisition into the food packing industry and provides a very good fit for our business and customer base to broaden the product range into a market segment that we are focusing on."
Eco Food range of trays are used by fresh food processors to pack product into retail packs that are sold through the major supermarket chains in the fresh meat, seafood and poultry aisles.
Pro-Pa, which provides flexible and rigid packaging solutions for a broad group of customers, has operations in Adelaide, Brisbane, Melbourne and Perth.
