Australian OEM HMPS has bought stretch wrapping specialist Integrated Machinery from Pro-Pac Packaging Group (ASX:PPG) for an undisclosed sum. With the acquisition, HMPS expands its footprint nationally and adds a key manufacturing hub in Melbourne.
This is the second acquisition made by HMPS in 18 months, the company having acquired vertical form-fill-seal (VFFS) specialist Propac Industrial in early 2020. Indications are it will not be the last.
Owner and CEO Mark Emmett told PKN he is open to further acquisitions where the synergy and opportunity is a fit for the business.
Integrated Machinery is a manufacturer of stretch wrapping machines, equipment, and systems, with installations across Australia and New Zealand. The company is also the agent for the Lantech range of stretch wrapping equipment from the USA.
For HMPS, Integrated Machinery adds a range of products at end-of-line equipment that complements the HMPS case packing portfolio and, combined with the Propac Industrial VFFS filling equipment range, now enables a total ‘fill it, pack it, wrap it’ capability for the group.
Emmett said a major attraction was adding the manufacturing base and access to engineering expertise in Melbourne, which is where 40 per cent of HMPS’s existing customer base operates. The company already has a manufacturing plant in Adelaide and in Sydney (following the Propac acquisition).
“It’s advantageous to have technicians on the ground in major hubs, especially when interstate movement is at times difficult, as Covid has taught us,” he said.
Emmett said another major attraction was the fact that often the first piece of equipment bought by a small food and beverage manufacturer is a stretch wrapper, and this would open the door to HMPS to supply Integrated Machinery customers with other equipment from the group’s growing portfolio.
“This also allows us to talk to these companies early in their automation process and provide ongoing support as their businesses grow,” he said.
For Emmett, probably the most important part of this purchase is that it means a boost for local equipment manufacturing.
“There’s a real and growing demand for locally built equipment. And we’re tapping into that by building capabilities in Australia. We’ve hired a dozen people in the last four months, we’re taking on more apprentices, and seeking out more project engineers and mechatronics engineers. It also opens doors for our employees to move interstate, gain new experience and grow in their roles.”
The Integrated Machinery business is run by Samantha Saunders, who will remain in her role as general manager.
Commenting on the acquisition, Saunders said, “HMPS and Integrated Machinery are a perfect fit. Integrated Machinery brings to the HMPS group the instant ability to offer an enhanced range of equipment and services, supported by an established, experienced and committed team, largely based in Victoria.
“With HMPS already a well-established packaging systems business, the Integrated Machinery team is very excited at the opportunities, benefits and support becoming a part of the HMPS group will bring,” she said.
“Personally, after 18 years with the Integrated Packaging Group (now Pro Pac Packaging Group), I am delighted to take up the opportunity to move across to HMPS, looking forward to all that will bring while still being able to work closely with and support the team at PPG.”