How Will Knoxcorp Transform Pro-Pac Packaging’s Australian and NZ Businesses?
Pro-Pac Packaging Group’s Australian and New Zealand operations have been sold to Knoxcorp subsidiaries, while the Perfection Packaging unit is set to shut down by February 2026.
- Sale of Australian and New Zealand businesses to Knoxcorp subsidiaries
- Perfection Packaging business to be wound down and closed
- Employment to transfer to new owners except Perfection Packaging staff
- Sale proceeds insufficient to return value to shareholders
- Creditors’ meeting to be convened post-sale completion
Sale of Core Businesses
Pro-Pac Packaging Group (PPG) has taken a significant step in its restructuring journey with the sale of its continuing Australian and New Zealand businesses to Knoxcorp, a privately owned investment company led by Jim Knox. The transactions, announced by administrators McGrathNicol, mark a pivotal moment for the packaging group, which has been under administration.
The Australian business and assets, excluding the Perfection Packaging unit, will be acquired by Consolidated Packaging Australia Pty Ltd, a Knoxcorp subsidiary, with completion expected by early March 2026. Meanwhile, the New Zealand operations will transfer to Consolidated Packaging Limited, another Knoxcorp subsidiary, with the sale expected to finalise by 30 January 2026.
Perfection Packaging Closure
Notably, the Perfection Packaging business located in Dandenong, Victoria, is excluded from the sale and is scheduled for a wind-down, with closure anticipated in February 2026. This decision signals a strategic exit from this segment, impacting the employees within that unit who will not transfer to the new ownership.
Implications for Employees and Customers
The sale agreements provide for the transfer of employment for all current employees of the continuing businesses, ensuring operational continuity and preserving jobs outside the Perfection Packaging division. Knoxcorp’s leadership has expressed commitment to investing in machinery and local manufacturing capabilities, underscoring the importance of maintaining supply chain reliability for customers.
Jim Knox, founder of Knoxcorp and former owner of packaging company Cospak, emphasised the group’s intent to develop the acquired businesses further, highlighting local manufacturing as a core value proposition.
Financial and Creditor Outcomes
Despite the positive outcome for customers and employees, the administrators confirmed that the sale proceeds will not be sufficient to provide any return to shareholders. Following completion, a second creditors’ meeting will be convened to discuss the ongoing administration process and next steps.
McGrathNicol Partner and Administrator Rob Smith described the sale as a positive outcome, reflecting a balanced approach to preserving business operations while managing insolvency challenges.
Looking Ahead
The packaging sector will be watching closely as Knoxcorp takes the reins of Pro-Pac’s core businesses, with expectations of operational investments and potential market repositioning. Meanwhile, the closure of Perfection Packaging marks a contraction that may have ripple effects in the local manufacturing landscape.
Bottom Line?
Knoxcorp’s acquisition signals a new chapter for Pro-Pac’s core operations, but the winding down of Perfection Packaging and creditor outcomes remain key watchpoints.
Questions in the middle?
- What specific investments will Knoxcorp make to modernise Pro-Pac’s manufacturing capabilities?
- How will the closure of Perfection Packaging affect local supply chains and employment in Victoria?
- What are the anticipated outcomes of the upcoming creditors’ meeting for Pro-Pac’s remaining obligations?
