The Spicers Group has entered into an agreement with Winson Group to acquire Signet Packaging.
Signet, a supplier of packaging, protective papers, marking, and other business supplies, will continue to operate as an independent entity within the Spicers Group.
“We have always respected Signet’s market approach and foresee collective potential in manufacturing and expanded e-commerce capabilities for the group,” David Martin, Spicers Group CEO, said in a company announcement.
“Undoubtedly, this acquisition rapidly enhances the scale of our group, and we are all excited about the progress our business has made in recent years through our consistent approach. Our singular focus is on growing our business by enhancing our customers’ engagement experience and expanding the range of services we offer them.”
Jack Winson, managing director, Signet, said becoming part of the Spicers Group is an exciting new chapter in the Signet story and will further enhance Signet’s position in the packaging market.
“As part of Spicers, we look forward to having greater scale to service customers at the high level we are known for.”
Acquisition part of Spicer Group’s broader 2030 growth strategy
The addition of Signet delivers $150 million in top line revenue and according to Martin “increases the turnover of Spicers markedly” without revealing the new top line revenue estimate.
Signet commenced trading in 1968 as Ace Marking and has more than 200 staff members that will move across following the acquisition. Spicers has 450 staff in Asia, Australia, and New Zealand.
According to Martin, Signet will run as a separate entity and continue to be run by Jack Winson from its premises at Ingleston Road in Wakerley in Brisbane.
“I have known Jack for many years and respect him and his team greatly,” Martin told Propack.pro.
“The entire team will also remain as we want good people to remain with the organisation. What we want to do is help them grow and create opportunities for everyone to find the best of both worlds and learn from each other. It is a great business with great people, and we want to grow it over time and add value to our group.
“There is very little overlap with customers – almost zero, however there is some portfolio overlap. This is a new customer base for the Spicers Group, as we predominantly sell products to printers who add value to our products. Signet sell products to large brand owners, and SMEs, and through this customer base we know we can grow further.
“We have a strategy out to 2030 and this helps us on that journey. If you look at our history over the last three years, we have added a number of strategic brands. We are happy to stay in our lane and when we make these types of business decisions, we look at the people and their capability as much as the products involved.
“Within packaging there are several ways we can broaden the portfolio and that will mean more to the customers.
“There is a high proportion of the Spicers business that is fibre-based and not just within our local portfolio, but globally. We are a strong supplier of fibre-based products whether it is paper, board or rolls. Spicers and KPP group source fibre around the world and that is an opportunity for Signet.
Martin said both companies also aligned in their sustainability goals and values.
“I find that a product with a focus on sustainability is also more likely to be a resilient product in the portfolio.
“Customers are clearly switching to fibre-based products. There is a long-term demand for fibre-based packaging and that is also a high proportion of the revenue at Signet.
“They have done a great job of creating demand in the market for new fibre-based products. A good example of this is the Geami Kraft honeycomb paper which is absolutely a hero product in the portfolio and fills the demand for the move away from single use plastics and their goal of replacing bubble wrap.”
The acquisition is scheduled to be completed by 2 April 2024.
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