Paper and board-based packaging company Detmold Group will acquire privately owned Australian carton packager Custom Cartons.
Group general manager Tom Lunn told PKN that while the decision had only just been announced to employees, with the purchase to be completed on 1 July, Detmold had been “looking at strategic acquisitions for some time”.
“Detmold's growing strongly – and globally – and such acquisitions are just a part of our growth plan,” he said.
It opened a factory in the Philippines two months ago, and it's about to open another in India.
Lunn said the Custom Cartons acquisition would give the group the ability to offer local carton manufacturning – thus improving its lead times.
“Previously, we had carton manufacturing overseas, but not in Australia,” he said.
“Customers will gain from an additional carton converting capability.”
Lunn said Custom Cartons' corrugated expertise and short-run capability would be complementary to the business.
Another advantage, he said, was the company's close proximity.
Custom Cartons operates its carton converting facility in Adelaide, adjacent to Detmold's global head office in Brompton.
All existing Custom Cartons management and staff will be transferred to the Detmold Group, with all employment terms and benefits retained.
Custom Cartons will continue to trade under its current brand and from its existing premises, as a division of the global Detmold Group.
