Following the JacPak acquisition last year, IVE Group CEO Matt Aitken said the company will expand its packaging operations in Sydney as it aims to achieve $150 million in annual revenue from the sector.

Aitken provided an update on the packaging category while reporting on the company’s financial results ending 30 June 2024 (FY24), and announced plans to expand its packaging business into IVE’s Silverwater factory in Sydney.

“We acquired the Melbourne-based folding carton producer JacPak on 31 October 2023, and this followed an 18-month review of the Australian packaging market to determine the best approach for IVE’s entry into this sector,” Aitken said.

“JacPak contributed revenue of $28.3 million during FY24 which was broadly in line with annual revenue expectations of around $45 million considering seasonality and transfers to IVE’s Victorian printing operations.

“There have been no changes to the expected synergies, with cost savings of $2.4 million now locked in and $15 million of available capacity for organic revenue growth and we are working towards filling that accordingly.”

Aitken said IVE Group has been encouraged by several new business wins since taking ownership of JacPak for $35 million in October last year, as well as a number of meaningful RFPs currently in the market.

IVE intends to service national brands through packaging operations in both Melbourne and Sydney using its national 3PL logistics network.

In Victoria, JacPak will continue to operate as a standalone business with annual revenue capacity of $60 million.

In New South Wales, IVE intends to install new packaging equipment at its Silverwater factory in Sydney with the addition of die cutting and gluing equipment to also support the efficient production of folding carton packaging.

The standalone JacPak facility coupled with the Sydney expansion will result in total packaging revenue capacity of around $90 million annually.

Additional investment in a second phase would add a further $60 million to capacity resulting in the Group achieving its stated ambition of generating annual packaging revenue of around $150 million over five years.