Pro-Pac Packaging have announced the purchase of the business and assets of long established Melbourne based film extruder, Ruscon Plastics.
The business will be relocated and integrated into Pro-Pac Packaging’s new Victorian industrial packaging distribution and manufacturing site in Dandenong.
Pro-Pac Packaging’s CEO, Brandon Penn commented, “The Ruscon purchase is another exciting step in Pro-Pac’s continued growth strategy, and this purchase will deliver significant benefits for Pro-Pac’s extruded film product category.”
The integrated business will provide the group with an expanded range of extruded film products and the ability to provide further innovative solutions to the existing and new Pro-Pac Packaging customers.
The business generates current turnover of approximately $5m per annum and is forecast to be earnings per share accretive in the 2011 financial year.
The purchase consideration, related relocation costs and working capital investment will be funded from Pro-Pac’s existing cash resources and debt facilities.