Australian packaging group Orora has paid $107.8 million ($US77 million) to acquire US marketing and print company IntegraColor and expand its North American operation.
The move comes a couple of weeks after Orora – spun off from packaging giant Amcor in 2013 – recorded a 27 per cent jump in half year profit to $88 million in the six months to December 31, 2015. It's the 5th purchase for Orora since it listed on the ASX in December 2013.
Orora CEO Nigel Garrard said the acquisition of the Dallas-based retail display solutions provider was in line with the company's growth strategy for North America.
"This creates a second stream of earnings for Orora in North America and provides a platform for further organic and bolt-on acquisition growth," he said. “We have plans for improved purchasing and integration of shared services over time.”
IntegraColor provides visual communications services for food and beverage, healthcare, education, and horticultural industries, including brand concepts, design, production, data management, fulfilment, and logistics support. Its location in Texas means it can provide national distribution and enhance Orora’s geographic footprint and reach.
Orora also announced a $42 million investment at its glass bottle facility in Gawler, South Australia, aimed at increasing output by 60 million bottles per annum. Increased demand from the wine industry was cited as one of the reasons for the capital injection. The installation of additional glass bottle forming lines will add 25 new jobs.