Page 6 - Packaging News magazine May-June 2022

6 NEWS |
www.packagingnews.com.au | May-June 2022
TOP CLICKS
1PRO-PAC TO EXIT RIGIDS WITH $56M SALE
TO TRICORBRAUN
Pro-Pac Packaging sold its PB Packaging rigids business
to TricorBraun for $56m, enabling
it to focus on its core business 2and its investments. (See p6)
APCO CEO BROOKE DONNELLY TO STEP DOWN After five years in the role, Brooke Donnelly, CEO of the Australian Packaging
Covenant Organisation, is
stepping down at the end of 3July. (See p10)
A DIAMOND FROM
DOW: PINNACLE AWARD FOR O F PACKAGING
O F Packaging’s high barrier, kerbside recyclable Muesli
Pouch for Brookfarm, using the Roll ‘n’ Recycle program, has won the Diamond award at the prestigious Dow 2021 Packaging
4Innovation Awards.
GLOBAL HONOURS
FOR LABELMAKERS’ GRAEME LANG
Graeme Lang, a pioneer and innovator in label
technology, was honoured in Italy with the Global Lifetime Achievement Award presented
5by the WPO. (See p26) VISY TO INVEST $700M
IN QLD RECYCLING
Visy will invest in new glass recycling infrastructure in Queensland, and relocate
its glass re-manufacturing 6operations. (See p7)
HUNGRY JACK'S SMART PACKAGING IS BACK BIGGER
The second iteration of Hungry Jack's UNO
campaign recently rolled out in Australia, in a project delivered once again by Result Group, EVRYTHNG, MCC, Detpak, and TLC Marketing.
PPG exits rigids, sells to TricorBraun
TOP STORIES FROM THE PACKAGING NEWS WEBSITE PACKAGINGNEWS.COM.AU
PRO-PAC Packaging (PPG) is selling its PB Packaging rigids business to US giant TricorBraun for $56m, saying the deal will enable it to focus on its core business, and allow it to invest in innovation and sustainability.
TricorBraun is the largest dis- tributor of primary packaging in North America. It operates in 75 locations around the world. The deal to buy PB builds on its entry into Australia last September, when it established its footprint in the region with the acquisi- tion of Cormack Packaging.
PB is positioned as a one-stop shop for rigid packaging needs, providing plastic and glass packaging, with customers in the health, industrial, food, and automotive industries.
In its half year results to December 2021, PPG said its rigids business was operating in the “new Covid-normal”, and “re-basing production levels” from peak Covid-19 demand, and “performing largely in line with expectation”. Revenue for the half year was down 12 per cent
Divestment simplifies Pro-Pac’s operations: Tim Welsh, Pro-Pac CEO and managing director.
at $31.8m, with profit before tax down by 60 per cent, or $1.8m, at $1.2m compared to $3m in same period in the prior year.
Under the sale the current leadership team at PB will join TricorBraun, and all 140 PB team members will be offered posi- tions with the company. Effective with the closing of the transac- tion, expected at end June, PB will operate as PB Packaging, a TricorBraun company. The com- pany will continue to operate as a stand-alone business.
Tim Welsh, PPG CEO and MD, said, “This divestment simplifies PPG’s operations, allowing us to focus on our core business and use our investment and manu- facturing expertise to capitalise on key industry trends including
innovation and sustainability. We will use the capital from the sale of the Rigid business to invest in sustainable, profitable growth. This will accelerate the delivery of our strategy and our transformation into a leading player in the circular economy.”
TricorBraun will acquire PPG’s Rigid business through Cormack Holdings. The proposed transaction is subject to Foreign Investment Review Board (FIRB) approval, and other customary completion conditions.
A transitional services agree- ment has been entered into to support the transition of the Rigid business and its opera- tions from PPG to TricorBraun for a period of up to 12 months following completion. ■
The ACCC further concluded that the acquisition by Pact and its involvement in the produc- tion of rPET raw materials in Australia would not allow it to block Synergy’s competitors from accessing recycled raw materials, with reasons includ- ing that imported rPET materials would remain available.
“The acquisition of Synergy would not materially change Pact’s ability or incentive to supply rivals with rPET raw materials,” Ridgeway added.
The ACCC said it also consid- ered it unlikely that Pact would have an incentive to stop supply- ing smaller customers because Synergy’s equipment is primar- ily suitable for customers with lower volumes.
In any event, the ACCC con- sidered that alternative rigid plastics suppliers would remain for those customers. ■
ACCC gives green light to Pact’s Synergy buy
THE ACCC will not oppose the proposed purchase of Synergy Packaging by Pact Group, say- ing the acquisition is unlikely to reduce competition in Australia's rigid plastic packag- ing sector.
Both Pact and Synergy manu- facture and supply non-beverage rigid PET containers, with Pact focused on supplying large manufacturers, while Synergy services SMEs.
Pact is also involved in the supply of rPET, with interests in the joint ventures Australian Recycled Plastic, and Circular Plastics Australia.
Synergy manufactures and supplies plastic packaging
from its facility in Tullamarine, Victoria, to customers in the beauty, cosmetics, pharmaceu- tical and food industries.
ACCC commissioner Stephen Ridgeway said, “Our investiga- tion concluded that Pact is not a close competitor of Synergy, and the acquisition was not likely to substantially lessen competition.
“Synergy offers short prod- uct runs to small and medium business customers, and Pact pri- marily services larger customers with high volume orders.”
The ACCC also considered that Pact would continue to be constrained by a number of rival manufacturers following the acquisition.