Wellington-based Gravure Packaging (GPL), has purchased Sydney-based Australian Packaging as part of a strategy to expand its business on both sides of the Tasman.
GPL Managing Director Greg Chapman says the flexographic printing, solventless lamination and perforation processes offered by Australian Packaging will provide a positive complement to his firm and deliver a proven customer base.
“Australian Packaging predominantly produces for the food and FMCG markets, as well as for domestic and international airlines,” Chapman said.
“One of their strongest portfolios is pie wrapping and they make a lot of high-quality laminates for what we call ‘rewind packaging’ for the snack food sector. Their customer base is Australia-wide and stretches into New Caledonia and Fiji, with one of the most recognised brands being Mrs Mac’s.
“The acquisition will provide an opportunity to cross-sell on both sides of the Tasman and it also opens up a new technology for each company.”
Chapman said there are numerous similarities between the two businesses including size, both having been in existence for about 30 years and each coming from a family-owned background.
“The complementary product lines will add a real strength to our overall capabilities.
“We will be retaining the existing staff in Australia and will mirror what we have recently established here in our managerial structure. Peter Barnes will fulfill the role of Production Manager with Vivienne Tasker being the Commercial Manager and my time will be split between the two companies.
“APL’s two Directors — Ray Cranfield and Dianne Anderson — will be retained for a period of at least 12 months to ensure a smooth transition in all areas of the business. Once we have bedded in the acquisition, then we can examine the interaction between the two companies from an administrative point of view to see what additional alignments and synergies we can achieve.”
With the Australian enterprise to continue operating under its current trading name, Chapman also moved to provide assurances for the immediate future.
“The previous owners of the business had wanted to retire and, having been approached by a broker on their behalf, we were invited ahead of three other parties to enter the due diligence process.
“I guess our approach is most closely aligned to their hearts. It is what you would call a ‘responsible sale’ — one where they wanted the future of the business to be secured and the long-term relationships with employees, customers and suppliers maintained.
“Those relationships are of paramount importance to both the new and previous owners of Australian Packaging.”
Chapman said GPL has been eyeing up potential acquisition targets both domestically and abroad for some time.
GPL is planning further capital investment at its Petone plant which has in part been driven by a new product line that has been developed with a key customer.