Orora Limited has announced the acquisition of Bronco Packaging Corporation, distributor of packaging with its headquarters in Dallas (Texas), for a total sale price of about 24 million dollars. The aim is to continue to increase Orora Packaging Solutions’ business in North America.
Bronco, a family-run company with about 30 employees, was founded more than 20 years ago and principally serves company clients in the fresh foods production sector. Currently the company generates profits of over 50 million dollars and supplies an on demand delivery service of packaging to clients with headquarters mainly in Texas. The existing management will continue to lead the company for a period of at least three years, ensuring a smooth transition to the new owner.
Commenting on the acquisition, Orora managing director and CEO, Nigel Garrard, said: “The acquisition of Bronco aligns with Orora’s stated returns focussed approach to allocating capital and will expand OPS’s geographic footprint and product capability in the targeted, higher growth food sector. Bronco also brings to Orora a strong corporate customer base that complements OPS’s existing corporate customer list. The acquisition continues the strategic focus to leverage the existing national footprint, product breadth and customised packaging solutions offering to further drive sales growth from both corporate accounts and new customer wins. Importantly, Bronco and OPS are already well known to each other and this will assist the integration of the two businesses as well as the achievement of expected synergies in procurement, supply chain and back office functions over the next 1-2 years”.