pgh chart, page-90

Hello from a sunshiney morning Navigator, and that breakout you charted the other day is still waiting to be further unpackaged?
-So a technical Shrodinger’s cat situation?
......An invitation to embrace the mysterious present?
...........Or an outcome that is pretty much assured?

I like mysteries - especially your company ones
.... and at Pact, the fundamental changes since I last looked seem to indicate future unpackaging will trend to the upside (global factors aside?).

EG news re sales soon as ‘old days’ favourites are moved on?

Spoiler : Jalco and Pact - back in the old days

disallowed/business/geminders-pact-group-buys-smorgons-jalco-for-80-million-20150617-ghpu8j.html
This was published 5 years ago
Geminder's Pact Group buys Smorgon's Jalco for $80 million
By Jared Lynch
Updated June 17, 2015 — 7.13pm


Billionaire Pratt family member Raphael Geminder's Pact Group has agreed to buy Barry Smorgon's Jalco for about $80 million.
The sale comes after sources close to Pact told the Australian Financial Review's Street Talk column this month the company was in talks to buy Jalco, a fast-moving consumer goods manufacturer, for $150 million.

Pact Group chief financial officer Darren Brown and chief executive Brian Cridland.CREDIT:JOSH ROBENSTONE
Pact, which Mr Geminder controls, said in a statement to the ASX on Wednesday the $80 million price tag represented a multiple of 6.5 times earnings before interest, tax, depreciation and amortisation.
The company said it expected the acquisition of Jalco to be "immediately earnings-per-share accretive and to generate a return on investment in excess of 20 per cent within three years".

"We are extremely excited about the Jalco acquisition, an adjacent and highly complementary business to the Pact Group enterprise," Pact Group chief executive Brian Cridland said.
"We have been a supplier to Jalco for many years, we understand the business and I am delighted to see these two businesses come together. Jalco is an ideal strategic fit as it will allow us to deepen our existing FMCG customer relationships and to enter new areas of growth serving customers in outsourced contract manufacturing and packaging."
The acquisition will be funded through Pact's existing debt facilities. Jalco, established in 1973, manufactures goods for leading companies and brands such as Unilever, Energizer and Castrol.
It operates at six sites in NSW, employing about 500 people, and has trailing annual sales of about $165 million.
Mr Cridland said Pact was "committed to a program of sustained investment in the Jalco business to better serve our customers and enhance their competitive capabilities".

"I am also delighted to welcome the Jalco team to the Pact family and, most importantly, we look forward to continuing to partner and supply our customers with innovative, high-quality, locally produced, world-class solutions".
The sale is expected to be completed by September 1. Pact shares were flat at $4.45 on Wednesday.

Spoiler : APM and Pact - back in the old days

http://www.packagingnews.com.au/news/pact-group-buys-pharma-company-for-90m
Pact Group buys pharma company for $90m

6 September 2016

Pact Group Holdings has announced it will buy specialty co-manufacturer Australian Pharmaceutical Manufacturers (APM) for $90 million.

The price represents a multiple of 6.5 times historical EBITDA.
Based in Victoria, APM is one of the largest providers of manufacturing and packaging services for nutraceuticals in Australia.
APM's manufactures tableting, encapsulation, and packaging solutions and produces vitamin and mineral supplements, herbal remedies, amino acids, and a range of other specialised formulations.
Pact Group’s MD and CEO Malcolm Bundey said APM operated in "a very attractive sector which is experiencing robust growth in demand both domestically and in export markets".
The acquisition of APM is a further step in the group's strategy to expand in specialised co-manufacturing.
It compliments and extends Pact's existing position established through the acquisition of Jalco in September 2015.
The acquisition will be funded by $75m of bank debt and a share issue of $15m.
It will be EPS-accretive in year one and will meet the company's target return hurdle of 20 per cent ROI in year three.

Spoiler : Pascoes and Pact ...back in the old days

https://www.manmonthly.com.au/news/pact-group-snaps-pascoes-boost-aerosol-production-capability/
PACT Group snaps up Pascoe’s to boost aerosol production capability

March 6, 2017News
Packaging manufacturer, PACT Group has acquired specialty contract manufacturer Pascoe’s Group for A$41 million to boost its aerosol manufacturing capacity.
Pascoe’s is one of Australia’s largest manufacturers of aerosol and liquid based consumer products within the household and industrial chemicals category. Its products include cleaning, pesticides, air care, personal care and aerosol based food products. It is Australia’s largest manufacturer of aerosol cooking oil.
The acquisition of Pascoe’s expands PACT’s investment in speciality contract manufacturing.
PACT Group managing director Malcolm Bundey said that the purchase made sense for the company strategically.
“This acquisition provides capability in aerosol based products, a highly attractive segment in which Pascoe’s has a leading position. It also extends our capability within liquids filling, providing alignment with our Jalco business,” Bundey said.
“The team at Pascoe’s share our passion for innovation. They have strong technical knowledge and a demonstrated commitment to research and development. Our enhanced product and service portfolio and our continued commitment to innovation will enable us to better serve our customers and deepen existing relationships”.

They WERE favourites, but last January- under new CEO, Sanjay Dayal (appointed in March’19), the writing was on the wall for Jalco (think Sunsilk, Ajax Colgate and more), APM , and Pascoes.
The three entitities - all up cost $211M plus expenses (including cap raising expenses) were to be sold for “up to $200M”.....

Spoiler : A discount divestment price?

https://www.afr. com/companies/manufacturing/pact-group-to-offload-contract-packaging-for-up-to-200m-20200121-p53t8x
Pact Group to offload contract packaging for up to $200m
Simon EvansSenior Reporter
Jan 21, 2020 – 11.20am

The new chief executive of ailing packaging company Pact Group, in which Rich Lister Raphael Geminder owns 41 per cent stake, plans to offload a lower-margin contract manufacturing division in a sale that could fetch close to $200 million.
Sanjay Dayal, who launched a strategic review of Pact last year after it lost its way under previous management amid rising raw material costs and the poor integration of a string of acquisitions, will explain the review at the company's half-year results next month.

On Tuesday Mr Dayal said Pact would be selling Jalco, Pascoe's and Australian Pharmaceutical Manufacturers. The sell-off, to be handled by investment bankers from Citi, is the first major strategic decision to stem from the review.

The Pact share price had gained about 3 per cent by mid-afternoon on Tuesday on the ASX to $2.77 but the stock is still a long way from the levels of April, 2017 when it was trading at $6.90.

Pact Group's new CEO Sanjay Dayal has made his first decisive move after a strategic review. Wayne Taylor
The contract manufacturing division generated sales of $372 million in 2018-19 and produced earnings before interest, tax, depreciation and amortisation of $25 million.

It operates 10 factories and warehouses and makes a broad range of packaging for products including laundry detergents, skin care and hair care products, vitamins and supplements and insect sprays.
Mr Dayal took over as chief executive in April from Mr Geminder, who stepped in to run the company in late 2018 on a day-to-day basis after former chief executive Malcolm Bundey departed following a rapid deterioration in the company's financial performance.
Restoring margins top priority

On Tuesday he said restoring margins was important for the company, and the sell-off would also simplify the portfolio, help lift investment returns and put the balance sheet in a better position.

Mr Dayal said the contract manufacturing business had leading positions in segments with strong growth potential.
"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,'' he said.

Pact operates more than 110 packaging facilities, mostly in Australia and Asia.

Rich Lister Raphael Geminder stepped in the run Pact after its performance flagged in 2018. Josh Robenstone

Mr Geminder is the brother-in-law of Australia's richest person, Anthony Pratt, and was listed at No. 53 in the latest Financial Review Rich List.

Pact was formed in 2002 after Mr Geminder engineered the management buyout of several underperforming assets from Visy Industries. Pact listed on the Australian Securities Exchange in late 2013 at an issue price of $3.80.

Mr Dayal was the chief executive of building products, corporate strategy and innovation at BlueScope, where he worked for nine years until 2018. Earlier in his career, he had a decade-long stint at explosives and chemicals group Orica.

Pact shares tumbled to $2.20 in late September, 2019 and have slowly been increasing on the expectation that Mr Dayal would make clear-eyed, clinical decisions based on lifting returns, and not having any attachment to legacy businesses.

News to come on how that’s all going?
And news yesterday on Pact Group’s shiny new star - Flight Plastics:

Spoiler : From the annual results:

https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvSTYP5wm/wReZsPBxke92GA==

Pact Group Seeks Clearance To Acquire Packaging Assets Of Flight Plastics

Tuesday, 25 August 2020, 7:03 pm
Press Release: Commerce Commission

The Commerce Commission has received a clearance application from Pact Group Holdings Limited (Pact) to acquire the assets and business of Flight Plastics Limited in New Zealand and the packaging-related assets of Flight Extruded Plastics LP in Adelaide (together, Flight).

Pact is a packaging solutions business with over 100 sites and 6000 employees worldwide. Its primary focus is the manufacture and supply of rigid plastic packaging for customers in the food, beverage, chemical, industrial and agricultural sectors. In New Zealand, Pact manufactures and supplies plastic packaging products to a range of customers.

Flight is a manufacturer of plastics sheets and packaging in Australia and New Zealand, including for fruit and produce, bakery, meat and seafood, and nursery and horticulture. Flight has plastic packaging plants in Wellington and Adelaide. Flight also has a plastic sheet plant in Adelaide but this is not part of the Acquisition. Flight’s Wellington plant can process waste plastic collected locally and turn it back into food-grade plastic packaging.
In New Zealand the two firms compete to supply rigid plastic packaging.
A public version of the clearance application will be available shortly on the Commission’s case register.
Background

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available on our website.”


... So I bought a few more on the basis of the present, the breakout having room for further unboxing and Pact’s intentions to take Flight.


Thank you for your chart Saragian