Pact Group Holdings Ltd. is buying the Australian and New Zealand operations of Sulo MGB (Aust.) Pty. Ltd., including its subsidiary Sulo (NZ) Ltd.
Melbourne-based Pact said in a statement to the Australian Stock Exchange it will pay up to A$34.8 million (US$32.2 million), subject to Sulo meeting post-purchase financial targets. Pact is funding the deal through existing debt facilities.
Sulo is Australia and New Zealand’s leading manufacturer of plastic waste and recycling bins — known in Australia as wheelie bins. It produces about 2 million two-wheel mobile garbage bins (MGB) annually for local governments and waste collection companies. Its sales in the year ended June 30 was about A$48 million (US$44.4 million).
Sulo was founded in Germany in 1890 and remained family owned until 2004 when the company was sold to a consortium of investors. The Australian subsidiary was established in 1983. Initially it imported MGBs from Germany before it began manufacturing in Australia.