Morrison & Co. has agreed to acquire a 50 percent interest in a crate pooling business from Pact Group.
The business is a vertically integrated provider of reusable plastic crate (RPC) pooling services to producers and grocery retailers across Australia and New Zealand.
The new strategic partnership will operate as an independent entity, with Pact retaining a 50 percent interest and continuing to provide industry-leading capability to drive the next phase of growth. The investment by Morrison values the crate pooling business at an approximate enterprise value of A$380 million ($245 million).
The business operates a network of wash and distribution facilities for RPCs used by retailers in Australia and New Zealand in their fresh produce supply chains. It manufactures and recycles the RPCs at its facilities in Australia.
“This is an attractive opportunity for our clients to gain exposure to the circular economy thematic, which aims to eliminate waste