Print firm buys up Australian business
A Wellington printing business has bought an Australian company as part of its ‘‘ambitious expansion strategy’’.
Gravure Packaging (GPL) bought Sydney-based company Australian Packaging, which produces packaging for airlines, the food industry and the fast-moving consumer goods markets.
GPL managing director Greg Chapman said the move was part of an ambitious strategy to expand the 30 year-old flexible packaging business on both sides of the Tasman.
Chapman co-owns GPL with founder Gunter Amelung and Paddy Daly.
They had been eyeing up potential acquisition targets both domestically and abroad for some time. They were also planning further capital investment at GPL’s Petone plant, which was driven by a new product line developed with a key customer.
Production process at the plant had also been ramped up as part of the growth strategy, with more shifts added to up its production capacity.
GPL makes labels for products such as Whittaker’s Chocolate and drinks such as Fresh Up, Mizone sports water, probiotic yoghurt and iced coffee.
‘‘We are going through quite a growth phase here in New Zealand,’’ Chapman said.
The business was working on strategies that included growing organically and through acquisitions.
There was enormous potential for growth in the packaging sector on both sides of the Tasman, he said.
‘‘Australia has suffered the same thing we have in New Zealand whereby a lot of manufacturing is moving offshore,’’ Chapman said.
‘‘But people will always need to eat, drink and consume products.
‘‘Consumers want more convenience with food products – smaller, individualised portions and very personalised pre-packaged products – so packaging is going to survive and thrive,’’ he said.
The Australian processes would complement those in Petone, he said.
The acquisition would also pro- vide an opportunity to open up new technology for each company.
‘‘One of its [Australian Packaging] strongest portfolios is pie wrapping and they make a lot of highquality laminates for what we call ‘rewind packaging’ for the snack food sector.
‘‘The customer base is Australiawide and stretches into New Caledonia and Fiji, with one of the most recognised brands being Mrs Mac’s.’’
The new business would still trade as Australian Packaging and its staff would be retained.
Australian Packaging directors Ray Cranfield and Dianne Anderson would stay for one year to ensure a smooth transition.
Chapman would split his time between the two companies.
‘‘Once we have bedded in the acquisition, then we can examine the interaction between the two companies from an administrative point of view to see what additional alignments and synergies we can achieve.’’
A large part of GPL’s business was shrink sleeve packaging to wrap around a product.
GPL was working to grow the sleeve market, which could create further opportunities for Australian Packaging.