Pact Group Holdings (ASX:PGH) has started a sale process in respect of its Contract Manufacturing division.
Pact has appointed Citigroup to assist in the sale process.
The Group’s Contract Manufacturing division includes the combined businesses of Jalco, Pascoe’s and Australian Pharmaceutical Manufacturers is a leading supplier of contract manufacturing services in Australia for the home care, personal care and health and wellness segments.
Contract Manufacturing reported sales of $372 million and EBITDA of $25 million in the 2019 financial year.
Pact Group’s Managing Director and Chief Executive Officer, Mr Sanjay Dayal, says divesting Contract Manufacturing will simplify the portfolio and strengthen their balance sheet.
Shares in Pact Group Holdings (ASX:PGH) are trading 7.4 per cent higher at $2.89.