MELBOURNE, AUSTRALIA — Australian packaging company Orora Ltd. has bought San Antonio, Texas-based plastic packaging distributor Worldwide Plastics Co.
The bolt-on acquisition was completed July 1, Orora CEO Nigel Garrard and Chief Financial Officer Stuart Hutton said in a joint presentation about Orora's financial results for the year that ended June 30.
It was Orora's first acquisition since its demerger from Amcor Ltd. late last year.
Worldwide Plastics supplies produce trays to customers in the United States, Mexico and Canada. Its custom and stock containers are made from up to 100 percent post-consumer plastic.
Worldwide has 10 distribution centers in California, Missouri, Texas, Mexico and Canada. The company will become part of Orora's North America reporting segment.
Garrard said: “We expect targeted bolt-on acquisitions to be part of our growth across the regions we operate in, where they are aligned with our strategy and satisfy our return rate for new investments.”
For the year to June 30, Orora reported pro forma net profit after taxes but before significant items of A$104.4 million (US$97.4 million). Sales hit A$3,176.1 million (US$2,961.9 million).
“We have delivered pro forma earnings growth of [about] 30 percent by increasing sales revenue and continuing to successfully deliver on cost-reduction programs,” Garrard said.
Orora spun off from Amcor on Dec. 17, and is listed on the Australian Securities Exchange.
