Headlining the recent ProPack Packaging Forum was a keynote presentation on the IVE Group’s expansion into the packaging industry and its recent acquisition of the JacPak business as it seeks to grow to $150 million in turnover within the next five years. 

Peter Fotiadis from boutique commercial advisory firm Mattingly shared how IVE decided to choose JacPak and why this is an important part of the company’s packaging strategy into the future.

“JacPak and the IVE business does about $45 million of turnover for cartons packaging. IVE has an ambition much bigger than that. The first thing that we did together as a group was a deep industry analysis, which was critical. Packaging extends well beyond folding cartons,” Fotiadis said.

“What emerged from that, for IVE, was that the folding cartons market was of high appetite and high interest, but specifically the small- and medium-run space would play most strongly to their strengths. Once we had a good look at where we were going to play, the second step was determining what we were trying to achieve.

“IVE wanted to bring scale to the business, was looking for sustainable returns, wanted to move forward in terms of sustainability, and bring in a business that would be a strong foundation – unlock additional benefits across the balance of the business.

“The reason JacPak came through quite strongly after that exercise was, it predominantly focused on small to medium run, and over 90 per cent of its packaging produced was in FMCG. This was very attractive to IVE.

“JacPak also had a full, in-house packaging solution, which was important as IVE could see business right through from pre-press to printing, cutting, gluing, finishing, and logistics. Its people were great, the assets were well invested, and the culture was going to fit incredibly well with IVE.”

According to Fotiadis, the first thing that came out from the JacPak acquisition was that there was still some additional capacity in the business for further sales. Another $15 million of capacity was available.

“The JacPak footprint alone could get IVE to $60 million. Then, there’s the additional $30 million that it’ll be able to leverage from IVE’s new Victorian and New South Wales investments,” he said.

IVE recently announced it has invested into renewing its printing and press assets. Fotiadis said what is due to happen is an investment in cutting and gluing equipment to complement the press investment so that it can have a full in-house solution and help deliver on the additional $30 million.

“That’s something that IVE will be targeting over the next three years. There’s another wave in its plans out towards the medium-term, of a further $60 million of revenue that would only be available and unlocked with further investment,” Fotiadis said.

“I don’t think further bolt on acquisitions are out of the question and it sees a pathway to grow organically in any case. IVE will be, in my opinion, a formidable competitor in this space.”

The inaugural ProPack Packaging Forum would not be possible without the support from its sponsors:
Platinum Sponsor – Durst Oceania
Gold Sponsor – Cyber 
Gold Sponsor – Miraclon 
Bronze Sponsor – Hybrid Software 
Bronze Sponsor – Kissel & Wolf 
Bronze Sponsor – Koenig & Bauer