Sydney Corporate Partner, David Zwi and Senior Associate, Jason Marcus recently acted for Pro-Pac Packaging (PPG), an ASX listed national packaging group, in its acquisition of the assets and business of Gallego Pty Ltd, trading as "Deandy Packaging". Deandy is a leading and innovative supplier of food services packaging, with a national customer base serviced from its Adelaide head office and distribution centre. Deandy has current annualised revenues in excess of $14 million and the acquisition is expected to be immediately earnings accretive. The purchase consideration will be funded from PPG's existing cash resources and the issue of 3.2 million PPG shares at 50 cents per share.
Deandy is one of several acquisitions in the packaging sector on Pro-Pac's radar which, if successfully completed, will double its annual revenue to $250million to $300 million. Pro-Pac's shares have risen more than 75 per cent since October last year.
Thomsons have now completed seven acquisitions for Pro-Pac Packaging in the last few months (Medirite Australia, Space-Pac Industries, Heron Professional Products, Stanli-Packaging, Hills Industrial Products, Deandy Packaging and Preferred Packaging).