Visy Cartons is one of the major players in the Australian beverage carton market
SIG, a systems and solutions provider for aseptic packaging, has agreed to acquire VisyPak Operations subsidiary Visy Cartons for around €43m ($47.6m).
VisyPak Operations is a subsidiary of Pratt Consolidated Holdings.
Visy Cartons, which is a major player in the Australian beverage carton market, provides filling machines to customers under long-term contracts.
Visy Cartons general manager Adam Lipscomb said: “We are delighted at becoming a member of the SIG family and are looking forward to pursuing growth opportunities from a strengthened position with expanded product and geographic opportunities.”
The acquisition of Visy Cartons will enable SIG to better serve its existing customers in Asia
Since many years, Visy Cartons has been producing SIG aseptic cartons under licence from SIG for sale in the Australia and New Zealand markets.
Visy Cartons reported revenue of around €52m in its fiscal year ending June this year, of which 80% was from the sale of SIG aseptic cartons. The remaining revenue was generated from fresh milk cartons, which are not part of the SIG licence agreement.
The acquisition of Visy Cartons will allow SIG to better serve its existing customers in Asia who have invested in or collaborated with players in Australia and New Zealand.
The deal is expected to be completed in the fourth quarter of this year. Upon completion of the deal, SIG will include Visy Cartons in its business operating in the Asia Pacific region.
SIG’s aseptic carton technology is a suitable packaging solution for the export of liquid dairy products. With efficient logistics and differentiation potential, the SIG’s aseptic carton technology will provide long shelf life to the products.
SIG Asia Pacific general manager and president Lawrence Fok said: “We are very pleased to welcome the management and employees of Visy Cartons to SIG after many years of collaboration.
“Visy has an excellent team with a proven track record and together we will work to ensure that customers in Australia and New Zealand enjoy excellent service and access to our leading technologies. We plan to leverage our broad product portfolio to tap into the New Zealand market.”
In October this year, SIG has introduced a new combistyle carton pack for the beverage industry.
Pratt is a privately-owned Australian company, which serves customers in the packaging, paper and recycling industries.