Orora is buying Texas-based packaging distributor Bronco Packaging Corporation (Bronco), for up to US$24m, as part of the continued growth of the Orora Packaging Solutions (OPS) business in North America.
Family-owned Bronco was established 20 years ago, and primarily serves corporate accounts in the fresh food manufacturing industry. Its 30 staff generate revenue in excess of US$50m, the company providing an on-demand packaging delivery service to customers predominantly located in Texas.
Following approval of the deal the existing Bronco management will continue to lead the business for a period of at least three years, ensuring a smooth transition to new ownership.
Nigel Garrard, managing director and CEO at Orora said, “The acquisition of Bronco aligns with Orora’s stated returns-focused approach to allocating capital, and will expand the geographic footprint and product capability in the targeted, higher growth food sector.”
“Bronco also brings to Orora a strong corporate customer base that complements our 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 one to two years.”