Pact buys trash bin manufacturer

By Kate Tilley
Correspondent

Published: August 11, 2014 12:05 pm ET
Updated: August 11, 2014 12:09 pm ET

Image By: Sulo (NZ) Ltd. Sulo MGB is the leading molder of two-wheel bins in Australia and New Zealand.

Related to this story

Topics Mergers & Acquisitions Rotomolding Oceania Insert molding
Companies & Associations

Pact Group Holdings Ltd. is buying the Australian and New Zealand operations of Sulo MGB (Aust.) Pty. Ltd., including its subsidiary Sulo (NZ) Ltd.

Melbourne-based Pact said in a statement to the Australian Stock Exchange it will pay up to A$34.8 million (US$32.2 million), subject to Sulo meeting post-purchase financial targets. Pact is funding the deal through existing debt facilities.

Sulo is Australia and New Zealand’s leading manufacturer of plastic waste and recycling bins — known in Australia as wheelie bins. It produces about 2 million two-wheel mobile garbage bins (MGB) annually for local governments and waste collection companies. Its sales in the year ended June 30 was about A$48 million (US$44.4 million).

Sulo was founded in Germany in 1890 and remained family owned until 2004 when the company was sold to a consortium of investors. The Australian subsidiary was established in 1983. Initially it imported MGBs from Germany before it began manufacturing in Australia.

Sulo has about 90 employees in its Australian and New Zealand operations. Sulo MGB (Aust.) operates a highly automated, large-tonnage injection molding plant at Somersby, 49 miles north of Sydney.

In July 2006 Sulo MGB incorporated a small family owned rotational molding company, Rabbit Plastics. In 2008 it established a rotational molding facility at West Gosford, near the Somersby plant. The West Gosford facility manufactures industrial bin lids, bin enclosures and larger four-wheel bins.

Pact Group CEO Brian Cridland said the Sulo acquisition will complement Pact’s growing sustainability, material-handling and infrastructure division.

Pact Group was established by Chairman Raphael Geminder in June 2002 and has grown significantly through a strategy of buying long-standing, well-established packaging businesses in Australia, New Zealand and Asia. It listed on the Australian Stock Exchange in December 2013, but Geminder’s private company, Geminder Holdings, retains a 40 percent shareholding in Pact.


Comments

Pact buys trash bin manufacturer

By Kate Tilley
Correspondent

Published: August 11, 2014 12:05 pm ET
Updated: August 11, 2014 12:09 pm ET

Post Your Comments


Back to story


More stories

Image

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global...    More

Image

Flextronics launches global injection molding, tooling unit

March 26, 2015 4:29 pm ET

Flextronics International Ltd. (Booth S34125) is officially launching Precision Plastics, a global injection tooling and manufacturing unit, as a...    More

Image

Core Molding buys CPI Binani assets, adds markets, D-LFT capabilities

March 20, 2015 1:20 pm ET

Core Molding Technologies Inc. is expanding its thermoplastics capabilities with the acquisition of substantially all the assets of CPI Binani Inc.,...    More

Image

Proposed Cardia-Stellar merger labeled 'not fair,' but still 'reasonable'

March 20, 2015 10:34 am ET

If the proposed merger of two Australian bioplastics companies goes ahead, the new company will be called Secos Group Ltd. and have annual sales of...    More

Image

Transilwrap buys Clear Focus, expands in advertising films

March 20, 2015 10:03 am ET

Film extruder Transilwrap Company Inc. has bought Clear Focus Imaging, a manufacturer of printable plastic films for large-scale display advertising l...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events