Australasian speciality packaging solutions firm Pact Group has closed the acquisition of TIC Retail Accessories (TIC RA) for a consideration of A$122m ($88.92m).

The deal was announced on 15 August through a share sale and purchase agreement. It was funded with A$62m ($45.19m) in cash and an issue of A$60m ($43.73m) of shares to the vendors.

The group paid A$20m ($14.57m) cash consideration on completion and will pay A$21m ($15.31m) in six months. The remaining A$21m ($15.31m) will be paid in 24 months.

Established in 1989, TIC RA is a closed-loop plastic garment hanger and accessories re-use business. The company’s client portfolio includes major retail and department store brands in Australia, New Zealand, the UK, and the US.

The acquisition expands Pact Group’s closed-loop asset pooling platform with the addition of TIC RA, which currently runs a closed-loop re-use programme to eliminate waste from single-use plastic hangers and accessories.

“The acquisition of TIC RA is a unique opportunity to further leverage our demonstrated capability in closed-loop asset pooling and plastics manufacturing.”

During the signing of the agreement, Pact Group managing director and CEO Malcolm Bundey said: “The acquisition of TIC RA is a unique opportunity to further leverage our demonstrated capability in closed-loop asset pooling and plastics manufacturing and our innovative pooling technologies.

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“TIC RA adds scale to our portfolio and expands our Asian platform. TIC RA’s sustainability agenda is strongly aligned with the group’s commitment to providing innovative ways to assist our customers to meet their sustainability objectives.

“We are very excited about the growth opportunities this acquisition provides Pact and look forward to welcoming the TIC RA team to the Group.”

As part of the agreement, TIC RA founders will support integration and ongoing operations of the company for two years to ensure a smooth transition.