WestRock Company has announced that it is expanding its consumer packaging portfolio with the acquisition of Hanna Group Pty Ltd (Hannapak), one of Australia’s providers of folding cartons to a variety of markets, including beverage, food, confectionary, and healthcare. The acquisition will build on WestRock’s established and growing packaging business in the region.
Hannapak is based in western Sydney in North Richmond, New South Wales. Started in 1967 by Charles Hanna, the company converts approximately 30,000 tons of paperboard into folding cartons, including for WestRock’s beverage packaging customers. The business has been led by Sam Hanna, who joins WestRock and will continue to lead the acquired operations.
WestRock expects to generate significant synergies with its current business in the region, including integration of additional WestRock paperboard into the Hannapak system. The AUD$75 million purchase price will be paid in cash and is subject to a customary net working capital adjustment. The purchase price represents an EBITDA multiple of seven times (pre-synergies) or less than five times after WestRock’s synergies have been taken into account.