Australian packaging firm Pact Group is in discussions to buy FMCG contract manufacturing services supplier Jalco, through a deal pegged at around $150m.

Jalco, which was put up for sale last year, has reportedly been at the negotiation table with Pact for several months.

Confirming its bid to buy Jalco, The Pact Group said in a statement: "In response to recent press speculation that Pact may acquire Jalco Group, Pact confirms that it is in discussions with Jalco Group.

"However, Pact confirms that it has not entered into an agreement to acquire Jalco nor is there any certainty that it will acquire Jalco."

Established in 1973, Jalco offers contract manufacturing service through five business divisions including a creative centre for research and development, home care, personal care, automotive and promotional packaging.

Pact was founded in 2002 by entrepreneur Raphael Geminder and has operations across Australia, New Zealand and Asia.

Employing around 3,500 staff, Pact produces packaging from plastic and steel for the food, dairy, beverage, chemical, agricultural, industrial and other sectors.

According to its website, Pact's strategy has been to expand by acquiring long standing and well-established packaging businesses.

Pact has recently acquired VIP Steel Packaging, a subsidiary of National Can Industries to expand its steel drums business.

Plastic waste and recycling bins maker in Australia and New Zealand Sulo Group was purchased in 2014.

"Pact continues to seek local and regional opportunities for growth and management remains focused on bringing new skills, ideas, technology, scale and convenience to Pact's clients through its network of businesses," Pact says on its website.

 

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