PRO-PAC PACKAGING LIMITED — M&A Activity 2012

Sep 9, 2012

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Pro-Pac Packaging Limited ACN 112 971 874

10 September 2012

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Pro-Pac Packaging Expands its Food Processing Business Silo with a Further Acquisition

ASX listed national packaging group, Pro-Pac Packaging Ltd (ASX: PPG) today announced the purchase of the business and assets of Start Food Tech Australia Pty Limited (“SFT”) .

SFT is a Victorian based national supplier of packaging consumables and products to the meat, chicken and fish processing industries. The business has current annualised revenue of circa $11M, a strong management team with a proven track record of fast sustainable growth and a range of agencies, products and customers which are complementary to those of Pro-Pac.

The SFT business will operate as a separate focused sales unit with warehousing and logistics being integrated into Pro-Pac’s existing distribution centres.

The acquisition will be immediately earnings accretive and the purchase consideration will be funded from Pro-Pac's existing cash and bank facilities.

Commenting on the acquisition, Pro-Pac's CEO, Brandon Penn, said “ the purchase of this business provides Pro-Pac with further critical mass in this strategic growth area. There are particularly good cross-selling opportunities and beneficial logistics and distribution synergies.”

For further information please contact Mr Brandon Penn, CEO, on Tel 02 8781 0500

About PPG

Pro-Pac Packaging Limited is a diversified manufacturing and distribution company, providing innovative, flexible and rigid packaging solutions for a broad group of customers. PPG is headquartered in Sydney with operations in Adelaide, Brisbane, Melbourne and Perth. PPG’s securities are listed and quoted on the ASX.

For further information on PPG visit www.ppgaust.com.au

Pro-Pac Packaging Limited ACN 112 971 874 147 -151 Newton Road, Wetherill Park NSW 2164 PO Box 6484, Wetherill Park NSW 2164 Tel: 02 8781 0500 Fax: 02 8781 0599 www.ppgaust.com.au