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Australian packaging giant Anzpac in $60million Asian buyout

Tuesday, 21 October 2008
By Print21

Two Asian packaging conglomerates move into Australian market with the take over of the cigarette and flexible packaging gravure and litho printer.

Singapore-based New Toyo International Holdings and Malaysian company, Tien Wah Press Holdings will hold a 51 per cent and 49 per cent interest in the joint company respectively after purchasing it for $60 million. The takeover will be completed in November.

Anzpac’s owner, British American Tobacco Australasia (BATA) put the Smithfield-based company on the market in September last year. Anzpac employs 180 staff in Australia, most of whom are expected to stay. However, it is believed that some senior management will leave the company.

Gary Yen, executive director and chief executive officer of New Toyo flagged the risk of competition for the company in Australia.

"Competition between packaging companies in Australia is intense. Consolidation and utilisation of synergies is often seen amongst the players in the packaging industry in Australia," he said. "However, the board is confident Anzpac will be able to manage the competition risk as [it] has an established track record in the industry and a long-standing relationship with its major customers."

Anzpac is the sole supplier of printed cartons to British American tobacco companies in Australia, New Zealand, the Pacific Islands of Papua New Guinea, Fiji, Samoa and the Solomon Islands. The deal carries with it a seven-year contract for Anzpac to continue to print BATA’s cigarettte packages for Australia and the Pacific, as well as Malaysia, Singapore and Vietnam.

Anzpac will be held by two partners in a joint venture company based in Hong Kong.

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