Texte AlternatifVisy Cartons has for many years produced SIG aseptic cartons under license from SIG for sale in the Australia and New Zealand markets. The company generated revenue of AU$84 million (around €52 million) in its fiscal year ending June 2019, of which approximately 80% was from the sale of SIG aseptic cartons with the remainder from fresh milk cartons that are not covered by the SIG license arrangement. Visy Cartons is one of the leading players in the Australian beverage carton market, placing filling machines with customers under long-term contracts supported by a strong local service organization. There is scope to expand the business to New Zealand where Visy Cartons currently has a very limited presence.

The acquisition will be funded through cash balances and existing credit facilities. The profitability of Visy is expected to increase with the realization of significant synergies, arising from supply chain optimization and access to SIG’s latest technologies and solutions.

The overall Australia and New Zealand market for aseptic beverage cartons is projected to grow at around 3% CAGR over the next five years, driven mainly by investments in dairies for the export of aseptic milk to China and other Asian countries. The acquisition of Visy Cartons will enable SIG to further support its existing customers in Asia who have invested into or partnered with players in Australia and New Zealand. In China in particular, demand for premium milk imported from Australia and New Zealand is expected to grow by around 7% CAGR over the next five years. SIG is already strongly positioned in the Chinese market, with an expanding local manufacturing presence and a newly opened regional Tech Centre.

The transaction is expected to close during the fourth quarter of 2019.

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