Australian packaging products and services provider Orora has reached a deal to acquire US-based packaging distribution firm Bronco Packaging.

Valued at around $24m, the transaction is part of the company’s efforts to expand its Orora Packaging Solutions (OPS) business in North America.

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Founded more than 20 years ago, Bronco employs around 30 workers and serves corporate accounts in the fresh food manufacturing industry.

With revenues in excess of $50m, the company provides an on-demand packaging delivery service to its customers.

“The acquisition of Bronco aligns with Orora’s stated returns focused approach to allocating capital and will expand OPS’ geographic footprint.”

Following completion of the deal, Bronco will continue to be managed by existing management for a period of at least three years to ensure a smooth transition.

Orora managing director and CEO Nigel Garrard said: “The acquisition of Bronco aligns with Orora’s stated returns focused approach to allocating capital and will expand OPS’ geographic footprint and product capability in the targeted, higher growth food sector.

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“Bronco also brings to Orora a strong corporate customer base that complements OPS’ existing corporate customer list.

“The acquisition continues the strategic focus to leverage the existing national footprint, product breadth and customised packaging solutions offering to further drive sales growth from both corporate accounts and new customer wins.”

Through the acquisition, Orora expects to achieve expected synergies in procurement, supply chain and back-office functions over the next two years.

Operating 47 manufacturing plants and 23 distribution sites globally, Orora supplies glass bottles, aluminium cans, closures and caps, boxes and cartons, point-of-purchase displays, and recycled paper, as well as packaging equipment, and rigid and flexible packaging.

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