ASX listed national packaging group, Pro-Pac Packaging Ltd (PPG) announced the purchase of the business and assets of Start Food Tech Australia Pty Limited (“SFT”). SFT is a Victorian based national supplier of packaging consumables and products to the meat, chicken and fish processing industries. The business has current annualised revenue of circa $11M, a strong management team with a proven track record of fast sustainable growth and a range of agencies, products and customers which are complementary to those of Pro-Pac.
The SFT business will operate as a separate focused sales unit with warehousing and logistics being integrated into Pro-Pac’s existing distribution centres. The acquisition will be immediately earnings accretive and the purchase consideration will be funded from Pro-Pac’s existing cash and bank facilities.
Commenting on the acquisition, Pro-Pac’s CEO, Brandon Penn, said “the purchase of this business provides Pro-Pac with further critical mass in this strategic growth area. There are particularly good cross-selling opportunities and beneficial logistics and distribution synergies.”