Pact Group Holdings Limited
(ASX:PGH) has announced it has entered into an agreement to purchase Australian Pharmaceutical Manufacturers for $90 million.
The acquisition price represents a multiple of 6.5 times historical earnings (EBITDA).
APM is one of the largest providers of manufacturing and packaging services for nutraceuticals in Australia, operating out of Victoria.
Pact CEO Malcolm Bundey has noted there is significant overlap in the two businesses customer portfolios, with the acquisition helping Pact to deepen its existing relationships.
Pact Group Holdings Limited reported a net profit of $85 million at 30 June 2016.
