Pro-Pac boosts turnover by $49m after buying 10 businesses

Pro-Pac Packaging has continued its push to become "the largest packaging distributor in Australia and New Zealand" after finalising its 10th acquisition in the past 13 months.

The flexible and rigid packaging specialist announced it had increased turnover by about $10 million after buying packaging supplier Source & Sell and industrial product distributor Stronghold Wholesale.

Pro-Pac said the acquisitions would be funded from its existing cash and finance facilities.

Chief executive Brandon Penn said the two new businesses would give Pro-Pac "further critical mass" and offered "particularly good cross-selling opportunities as both businesses bring together new customers and new products".

Pro-Pac has made eight other acquisitions since October 2011 that have reportedly increased revenue by more than $39 million.

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The Sydney-based firm has also allocated $1.8 million to consolidating its Sydney, Perth, Adelaide and Queensland operations.

For the 12 months to 30 June 2012, Pro-Pac reported a 15% rise in revenue to $133 million and a 16% rise in pre-tax profit to $8.1 million.

It also said it had "virtually no net debt" and undrawn bank facilities of $24 million.

"The company has embarked on a focused strategy of growing its food service and food-related packaging business silos. We view these as strong growth sectors in the Australian industrial landscape, where we currently have minimal overall market share," it said.

Pro-Pac has more than 400 staff, more than 10,000 customers and sites in Melbourne, Brisbane, Perth and Adelaide, according to the firm.

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