Pact Group (Melbourne), the largest manufacturer of rigid plastics packaging in Australasia, is taking a leap into the nutraceuticals market with its latest purchase of Australian Pharmaceutical Manufacturers (APM; Melbourne) for $90 million.
APM, which was established in 2002, produces a range of therapeutic products including vitamin and mineral supplements, herbal remedies and amino acids, and has its own state-of-the-art tableting, encapsulation, blistering and packing facility.
Pact managing director Malcolm Bundey said, "APM operates in a very attractive sector, which is experiencing robust growth in demand both domestically and in export markets."
The acquisition will be funded through $75 million in bank debt and an equity raising of $15 million.
Established by Raphael Geminder, Pact was formed in 2002 and has well-established packaging businesses throughout Australia, New Zealand and Asia. The company, which has 68 manufacturing sites across seven countries employing more than 4,000 employees, serves customers in the food, dairy, beverage, chemical, agricultural, industrial and other sectors.
The deal is expected to be finalized by September 16, which falls around the one year anniversary of Pact’s $80 million acquisition of consumer goods manufacturer Jalco. This is to be Pact’s 53rd acquisition since 2002.