A new week, a new deal. Or so it seems for TricorBraun, the St. Louis-based packaging distributor that continues to grow through acquisition.
TricorBraun said April 10 the company has an agreement to acquire PB Packaging, a subsidiary of Pro-Pac Packaging Ltd., a move that will expand the company's business in Australia.
Pro-Pac, a publicly traded company that also manufactures plastic packaging, said the deal is worth $41.5 million (A$56 million.
PB Packaging distributes both rigid plastic and glass packaging for the health, industrial, food and automotive sectors.
"This divestment simplifies Pro-Pac's operations, allowing us to focus on our core business and use our investment and manufacturing expertise to capitalize on key industry trends including innovation and sustainability," Pro-Pac CEO Tim Welsh said in a statement.
Pro-Pac, based in Melbourne, Australia, both manufactures and distributes packaging in Australia, New Zealand and Canada. The company calls itself the largest Australian manufacture of industrial, agricultural and horticultural flexible film packaging.
"We will use the capital from the sale of the rigid business to invest in sustainable, profitable growth. This will accelerate the delivery of our strategy and our transformation into a leading player in the circular economy," Welsh said.
TricorBraun first moved into Australia in September with the purchase of Cormack Packaging. All 140 employees at PB Packaging are being offered jobs with the new owner.
"Over the last 32 years, we've solidified our reputation as one of the most respected distributors of packaging materials and services in Australia," said Andrew Allsop, executive general manager of PB Packaging, in a statement.
TricorBraun has now acquired 34 packaging distribution companies around the world. This latest deal is expected to close during the current fiscal quarter.
The transaction requires approval from the Australian Foreign Investment Review Board. The two companies have entered a "transitional services agreement" of up to a year after the deal is closed to help transfer the business to TricorBraun.