Australian packaging products and services provider Orora has acquired the US-based packaging and facility supplies company Pollock Packaging for $80.5m.
According to Orora, the deal value represents 8.7 times trailing earnings before interest, tax, depreciation and amortisation (EBITDA).
Pollock operates a corrugated box manufacturing plant and in-house packaging design service in Dallas, Texas.
The company employs more than 440 associates to serve customers in various market segments, including industrial, retail and facility supplies.
It also operates six distribution centres in Texas, Georgia, North Carolina, New Jersey, and California.
Orora expects that the deal will increase the presence of the Orora Packaging Solutions (OPS) business in North America and improve existing customer offerings in the facility supplies market segment.
Orora managing director and CEO Nigel Garrard said: “The addition of Pollock to OPS’s business provides a scale platform to leverage the capability and customer reach of both businesses to continue to drive sales growth with existing and new customers.
“In addition to a strong core packaging solutions offering, Pollock brings a well-established facilities supplies business that will give OPS the platform it needs to expand in this key market segment.
“Pollock’s customer base will benefit from access to OPS’s broader supply portfolio and geographic footprint.”
Garrard noted that the company will maintain the Pollock management team to support the integration of the two entities.
He also added: “Pollock aligns with Orora’s stated returns-focused approach to allocating capital, as was the case with the acquisition of Bronco Packaging in August 2018.”