Australasian packaging company Pact Group (ASX:PGH) has announced the acquisition of two Asian enterprises and Western Australian supply store ECP Industries, to be funded through a fully underwritten entitlement offer of $176 million.
The acquisition of Closure Systems International (CSI Asia) and Graham Packaging Company (GPC Asia) from Reynolds Packaging totals $142 million in cash.
The agreement to acquire ECP Industries represents a cash value of $11.7 million.
The transaction establishes a footprint into the Asian market, scaling up growth to exceed $200 million per annum in revenue.
The company said the transaction is strongly aligned with Pact’s strategy to accelerate growth in existing sectors and also provides a low cost manufacturing base to support new product sales into existing markets.
Shares in Pact Group (ASX:PGH) are on a trading halt and last traded at $5.81.