Enhances Orora North America’s packaging solutions capability and geographic footprint
Orora Limited (ASX:ORA) announced today it has acquired IntegraColor Ltd for US$77million (approximately A$107M). The acquisition price represents a multiple of 6.9 times historic EBITDA.
IntegraColor is a well-established US provider of point of purchase retail display solutions and other visual communications services for long-term corporate customers across the consumer (food and beverage), healthcare/education and horticulture industries. IntegraColor offers customers a broad set of value-added services from brand concepts through to design, production, data management, fulfilment and logistics, complementing Orora’s total packaging solutions capability.
Founded in 1956, and now employing approximately 300 team members, IntegraColor is based in Dallas, Texas, from where it services over 3,200 customers across North America. This Texas location is ideal to facilitate national distribution and enhances Orora’s geographic footprint and reach.
Orora’s Managing Director and CEO, Nigel Garrard, said “The acquisition of IntegraColor is consistent with our stated growth strategy for North America, as it enhances both our customer value proposition and our geographic footprint. Additionally, Orora plans synergies to be realised over time through improved purchasing and integration of shared services.”
“This creates a second stream of earnings for Orora in North America and provides a platform for further organic and bolt-on acquisition growth” Mr Garrard added.
“IntegraColor’s customer-focused culture is well-matched to Orora, and I look forward to welcoming IntegraColor’s team members to our team,” said Mr Garrard.
Source : ororagroup.com