A subsidiary of Australia's Visy Group of packaging companies says its acquisition of a New Zealand plastic packaging manufacturer will help it better compete with Asian manufacturers on the world market.
On Aug. 11, Visy Industrial Plastics (NZ) Ltd. (VIP) announced a deal to buy Auckland, New Zealand-based Alto Holdings Ltd.
VIP is part of the Melbourne-based Visy Group of companies controlled by the Pratt family, headed by Richard Pratt.
Alto has estimated annual sales of US$109 million and produces PET, high and linear low density polyethylene packaging, containers, and seals for food and beverage applications; and industrial, agricultural, pharmaceutical and medical products. It employs 840 at New Zealand plants in Auckland, Hamilton, Hawkes Bay, Wellington and Christchurch.
VIP makes rigid HDPE containers, wide-mouth PET bottles and jars for food, household, and industrial products at sites in Auckland, Christchurch and Avondale.
VIP general counsel Nick Perkins would not disclose the value of the deal and would neither confirm nor deny press estimates of US$128 million.
Perkins said the Alto and VIP names will continue to be used in the New Zealand market. He said all existing Alto staff and directors have been retained.
The deal was finalized after receiving approval from New Zealand's Commerce Commission. The firm's application to the commission said VIP needed Alto ``to compete in the global packaging market, particularly with competitors in China and Southeast Asia.''
Alto Holdings Ltd. formed in April after the merger of investment company Masthead Equities Ltd. with Alto Plastics Ltd., and New Zealand plastic packaging companies Vertex Group Holdings Ltd. and Vertex Pacific Ltd.