National packaging group, Pro-Pac Packaging has announced that it will acquire Sydney-based industrial packaging, safety and warehouse product distributor, Hills Industrial Products (Hills) for an undisclosed amount.
Pro-Pac Packaging has reportedly targeted Hill’s for its unique business model, which consists of selling products direct via catalogue and an online order system. Pro-Pac Packaging said the model offers a “value proposition that differentiates [Hills] from most other distributors” in a statement to the ASX today.
Hills has purportedly been developing its “intellectual property”; comprehensive catalogue and mailing list over the past 5 years. The business has recorded a current annual turnover of over $A7.5 million.
The purchase will be funded by Pro-Pac’s existing cash resources and debt facilities.
Pro-Pac CEO, Brandon Penn said the acquisition of Hills will be an opportunity for the packaging giant to take Hill’s success NSW business model national through Pro-Pac’s established infrastructure.
“Hills have developed significant intellectual property and business methodologies we will be able to leave and which will give use new sources of revenue streams,” Penn said in the same statement.
Hills will be run as a separate sales unit and brand under Pro-Prac, but will utilise Pro-Prac’s existing back end and logistics infrastructure.
ASX-listed Pro-Pac Packaging is a diversified manufacturing and distribution company with headquarters in Sydney, with operations in Adelaide, Brisbane, Melbourne and Perth.
Image: Pro-Pac Packaging