Page 9 - Packaging News magazine Sep-Oct 2022

CLG buys Alliance Paper
ASX-LISTED Close the Loop Group (CLG) has acquired thermal paper supplier and sustainable paper products group Alliance Paper, paying $1 together with an investment in working capital of approximately $4.5 million for the company.
Alliance Paper is the largest and longest-serving supplier and con- verter of paper roll products in the Australian market, and offers a range of BPA and phenol-free thermal receipt rolls, as well as other recyclable paper products. Alliance has also developed sus- tainable paper products such as recyclable coffee cups, and dispos- able and recyclable eskys.
The company’s customer base includes leading Australian supermarkets, as well as several leading brands including KFC,
McDonalds, Nike and Bank of Queensland.
Close the Loop Group CEO Joe Foster told PKN the purchase of Alliance strengthens the group’s position in the sustainable paper product sector, and will allow it to develop new sustainable paper products that can replace some traditional plastic packag- ing, based on technologies that Alliance has developed.
“As with our other recent pur- chases, it provides us with a highly complementary market space and product suite to our existing pack- aging offering,” Foster said.
Foster said the opportuni- ties this acquisition opens up for the group, both in Australia and the US market, are “huge and exciting” for both packaging and circular recycling.
“We see the advanced paper technologies which Alliance has brought to market as offering huge promise for developing pouches and flow wrap packaging in paper – in fact these have already been trialled successfully by our divi- sion, OF Flexo,” Foster said.
RESULTS
Close the Loop’s financial per- formance in its first full year reporting period as an ASX-listed company exceeded its key pro- spectus metrics. CLG says it is entering the new financial year in a strong position to accelerate its growth momentum.
Its revenue of $89.2 million was 20.7 per cent above its prospectus forecast, and up by a third, or 32.3 per cent on last year. Its EBITDA of $14.3 million, was 16.3 per cent
Above: Huge opportunity in this acquisition: Joe Foster, CEO, Close the Loop Group
above the prospectus forecast, and 8.3 per cent higher than last year, while its net profit before tax hit $7 million, which was 17.2 per cent above the forecast in the pro- spectus, and 7.7 per cent above the result last year. ■
Expertise - Passion - Automation
Join the conversation: SMC Corporation Australia I New Zealand
WWW.PACKAGINGNEWS.COM.AU
SEPTEMBER – OCTOBER 2022 ❙ 9
NEWS