Pact acquires APM, continues buying spree

Image: Fairfax

The country’s biggest plastic packaging manufacturer, Pact Group, has announced that it will acquire Australian Pharmaceutical Manufacturers for $90 million, continuing the company’s aggressive goal of building its revenues to $5 billion through acquisitions.

News.com.au reports that the price for APM, which serves the nutraceuticals market, was 6.5 times APM’s earnings before interest, tax, depreciation and amortisation.

The acquisition would be funded through $75 million in bank debt and $15 million in equity raising, reports AAP.

It would also, said Pact, would build on the position it gained when it acquired contract manufacturer Jalco a year ago.

Last month Pact reported EBIT of $162.5 million, a profit increase of 25.8 per cent to $85.1 million, and a revenue increase of 10 per cent to $1.39 billion for the financial year. The period included the acquisition of Jalco and three other companies.

At the time, chairman Raphael Geminder told The Australian Financial Review the company hoped to eventually increase revenues to $5 billion through acquisitions.