- Pact Group to gain $160 million in cash proceeds from the transaction.
- Joint venture formed with Morrison & Co to expand reusable plastic crate pool unveiled.
- Crate pool operates in Australia and New Zealand

In a strategic move to amplify its capabilities and seize growth opportunities, Pact Group has announced the sale of 50% of its crate pooling business to Morrison & Co, a prominent global infrastructure investment manager.
Under this transformative transaction, a new joint venture will be established, with both Pact and Morrison sharing ownership in equal proportions. This venture is set to operate as a distinct entity, unlocking fresh avenues for growth.
As part of the agreement, Pact is slated to receive approximately $160 million in cash proceeds, taking into account costs and taxes. Furthermore, an additional earn-out of $20 million is possible, solidifying an enterprise value of $380 million for the burgeoning enterprise. Cash proceeds from the sale will enable Pact to reduce debt and accelerate investment in the company’s plastic recycling and packaging business which is central to its circular economy strategy.
At the core of this venture is the crate pooling business, an integral part of Pact’s Reuse division. This business oversees a dynamic asset pool consisting of reusable and recyclable plastic crates and folding produce bins. These crates are instrumental for retailers across Australia and New Zealand, serving the fresh produce supply chains.
Manufactured locally, these crates and bins are meticulously crafted within Australia. The business operates an intricate network encompassing wash and distribution facilities, ensuring a continuous circulation loop from suppliers to retailer distribution centers and eventually reaching supermarket shelves.
The recent extension of the crate pooling contract with Woolworths for an additional decade signifies the business’s robust presence in the market. With plans to escalate crate usage from 50 million to 80 million per annum by 2025, the company is poised for remarkable growth. Furthermore, a long-term contract extension with ALDI Australia underscores the enduring strength of its operations.
Pact Group responds to surge in demand
Pact’s CEO and Managing Director, Sanjay Dayal, expressed his optimism. “The surge in demand from our clients for an accelerated expansion of our crate pooling offering aligns with their quest for enhanced efficiency and sustainability within the circular economy,” he said. “This strategic partnership with Morrison & Co presents an exciting prospect, propelling business growth and augmenting our product and service range. Pact will certainly participate in the rewards of this evolution.”
Mark Mudie, Partner at Morrison, further emphasized the significance of this collaboration. “Our clients have a unique opportunity to engage with the circular economy theme through this venture, which strives to prolong product and material utilization,” he added. “Embracing the circular economy holds the potential to tackle pressing environmental and social challenges while delivering economic value to our investors.”
The proceeds stemming from this transaction will empower Pact to reduce its debt and expedite investments in its plastic recycling and packaging segment. This segment, integral to Pact’s circular economy strategy, aligns with the company’s commitment to sustainability.
Completion of the transaction is expected later this year, subject to the satisfaction of customary conditions and approvals.