Pact Group has announced plans to sell its Contract Manufacturing Division, which includes the combined businesses of Jalco, Pascoe’s and Australian Pharmaceutical Manufacturers.
The Group’s Contract Manufacturing division is a leading supplier of contract manufacturing services in Australia for the home care, personal care and health and wellness segments, with reported sales of more than $370 million in 2019.
Pact has appointed Citigroup to facilitate the sale process following a detailed strategic review of the business and its customer and product portfolio, which includes laundry detergents and softeners, home cleaning products, insecticides, skin care products, vitamins and supplements.
“Contract Manufacturing is an attractive business that enjoys leading positions in sectors with strong growth potential,” said Pact Group’s Managing Director and CEO, Mr Sanjay Dayal.
“However, Pact’s success over the longer term is dependent on our ability to deliver organic growth and restore margins in the core packaging business while growing our materials handling and sustainability businesses.
“Divesting Contract Manufacturing will simplify the portfolio and sharpen our focus on driving improved returns in the remaining Group. Importantly, divestment will strengthen and improve our financial flexibility,” he concluded.