Thai plastic maker TBPI is buying paper packaging business Intelipac for £13m, as part of a strategy to diversify away from its core business. Intelipac manufactures some two million non-plastic bags each day.
The Thai government has just announced it will be taxing single use plastic bags, and an increasing number of countries are taking a stringent approach to them.
Intelipac is a 12-year-old business, with manufacturing in the UK, and for the past decade has had a major distribution operation in Australia. It manufactures and supplies paper bags, and supplies a host of other non-plastic bags including cotton and jute. Most of the hot chicken bags in major Australian supermarkets are from Intelipac.
Speaking to PKN Brent Johnstone, managing director of the Australian Intelipac business said, “The reasons for the deal are clear, TBPI wants to get into non-plastic bags. Intelipac is a global leader in eco-friendly bags, both manufacture and supply. And for Intelipac not only do we gain major financial backing, but we now have increased distribution opportunities, through the TBPI network.”
TBPI says the acquisitions are part of its Transformation Strategy, and says it expects to be earning an extra THB1bn ($43m) a year, beginning in Q4 this year. It is buying all the ordinary shares of Intelipac Paper Manufacturing (IPM) and Intelipac (ITP), and is taking 25 per cent of the ordinary shares in Intelipac Australia (ITPA), with the remaining 75 per cent to held by ITP, of which TBPI will be the sole owner.
IPM manufactures and supplies paper packaging products to the UK food and bakery industries and to shopping malls. ITP trades plastic packaging, including reusable bags, and bags for vegetables, fruits and other foods in Australia and Europe. ITPA trades plastic packaging products in Australia.
