·        New 50/50 joint venture to scale up Trans-Tasman reusable packaging crates operations.

·        Provides sustainable alternatives to cardboard boxes for supermarket supply chains.

·        Business will be known as Viscount Reuse.

ASX-listed Pact Group and global infrastructure investment manager, Morrison & Co (“Morrison”), have completed the sale of a 50 per cent stake in Pact’s Crate Pooling business to Morrison on behalf of its investors, to form a new joint venture.

The business has been rebranded as Viscount Reuse, operating as an independent entity and focusing on expanding its capabilities and accelerating growth opportunities in Australia and New Zealand.

Viscount Reuse manages an asset pool of reusable and recyclable plastic packaging crates with contracts in place with leading grocery groups including Woolworths, ALDI Australia and Foodstuffs in New Zealand. The business also manufactures and supplies crates, bins and megabins for use in the fresh food and automated supply chain.

Earlier this month, the business opened a new service facility in Auckland, New Zealand, enhancing its network of wash and distribution facilities throughout Australia and New Zealand that keep the crates moving in a closed-loop asset pool between suppliers, retailer distribution centres and supermarkets, thereby decreasing waste and maximising efficiency.

The crates, which are reusable and recyclable, are a sustainable alternative to single use cardboard and polystyrene boxes. Designed to be used about 140 times before being recycled, they deliver economic and sustainability benefits, which have been driving adoption across fresh grocery supply chains.

Former Pact Reuse Executive General Manager and incoming Viscount Reuse CEO, Wayne Williams said: “We are excited about the future for Viscount Reuse and the growth that this new joint venture partnership will bring to existing and future customers who are committed to operating their fresh produce supply chains more efficiently and sustainably.”

Morrison Partner, Mark Mudie, described the business as playing a critical role in the transition to more sustainable grocery supply chains and reducing food and packaging waste.

“Our investment in Viscount Reuse provides an opportunity for our investors to gain access to an experienced circular economy operator that enables its customers to achieve their sustainability targets while improving product quality.”

Pact will receive approximately A$160 million in cash proceeds from the sale net of costs and tax, with a further earn-out potential of A$20 million, reflecting an enterprise value of A$380 million for the business.