Pact Group acquires Jalco

Posted by AFN Staff Writers on 22nd June 2015

Pact GroupOne of Australia’s largest plastics manufacturers, Pact Group, has acquired the Jalco Group for approximately $80 million.

The Jalco Group is a manufacturer of packaging for everyday goods including well known brands such as Sunsilk and Ajax.

“Jalco is an ideal strategic fit as it will allow us to deepen our existing FMCG customer relationships and to enter new areas of growth serving customers in outsourced contract manufacturing and packaging,” said Brian Cridland,  Pact Group CEO.

Benjamin Kay, Executive Director at Melbourne-based  corporate and investment advisory firm, BW Equities said that similar acquisitions can be expected by Pact Group in the future.

“Acquisitions are expected to remain a growth driver during the coming three years,” said Kay in a 17 June 2015 BW Equities Report for investors.

The report also indicates that Asia is likely to be a gateway of expansion for the Pact Group.

“Australia and New Zealand are mature markets, but the company has an emerging presence in the higher-growth markets of Asia,” said Kay.

“The company has grown quickly via acquisitions, so it is difficult to gauge the underlying organic growth of the business,” said Kay

The Melbourne-based Pact Group was established in 2002. Today the company has a presence in Australia, New Zealand and numerous Asian markets. Amongst Pact’s biggest clients are private labels for Woolworths, Coles, as well as various divisions of Unilever.