Opportunity stories

Acquisition of visy cartons in australia

Acquisition of a leading player in the Australian beverage carton market

Highlights

  • Revenue ~€50m1
  • Acquisition price €43m1

    Transaction completed 29 November 2019

  • Visy becomes part of SIG’s business in the Asia Pacific region
  • Significant scope for expansion in New Zealand

1 AUD/EUR exchange rate as at 29 November 2019

Acquisition of a leading player in the Australian beverage carton market

The overall Australia and New Zealand market for aseptic beverage cartons is expected to grow at around 3% Cagr over the next five years, driven mainly by investments in dairies for the export of aseptic milk to China and other Asian countries. In China in particular, demand for imported premium milk is expected to grow by around 7% Cagr. The acquisition of Visy Cartons will enable SIG to further support its Asian customers who are investing in or partnering with dairy producers and farms in Australia and New Zealand.

The acquisition was funded through cash balances and existing credit facilities. The profitability of Visy is expected to increase with the realisation of significant synergies arising from supply chain optimisation and access to SIG’s latest technologies and solutions.

"Visy has an excellent team with a proven track record and together we will work to ensure that customers in Australia and New Zealand enjoy outstanding service and access to our leading technologies."

Lawrence FokPresident and General Manager of SIG Asia Pacific