Packform actively seeking acquisitions and joint ventures ahead of planned IPO

Packform, a private Los Angeles, California-headquartered packaging marketplace, founded by Australian entrepreneurs, is actively seeking acquisition and joint venture (JV) opportunities ahead of its planned IPO, said founder and Executive Chairman Philip Weinman.

The company, which is revenue-generating, profitable, and had completed a AUD 25m (USD 16m) raise in October 2021, does not require capital to grow now and has deferred the planned IPO for 12 months due to market volatility, Weinman said.

Currently valued at around AUD 300m, it could, however, revisit the IPO earlier if necessary to fund a particularly attractive accretive acquisition or JV opportunity, or could pursue another raise prior to the IPO via another equity raise or debt finance, Weinman added.

Packform, which provides a three-way marketplace connecting customers, packaging suppliers and dealers, is on track for AUD 75m revenue for 2023 and has an EBIT of 15%, significantly higher than the industry average of 3.5%, due to its sophisticated machine learning- and robotics-powered online platform ensuring that it has minimal overheads, he said.

The company, which has finetuned its model for the packaging industry, is now looking to expand into other sectors with multiple suppliers such as lighting, plumbing, promotional gifts, printing, and stationery, which will diversify its revenue model and provide a cross- selling opportunity to its existing customer base, Weinman said.

It is on the look-out for operators that are revenue-generating but have high overheads and manual processes and could benefit from joining its platform, he said, adding that it is in the process of completing a JV with a large US-based lighting supplier with some 75 sales reps.

Packform will consider opportunities globally, especially in large markets like the US, which currently accounts for all its revenue, as well as markets that it plans to start selling into including Europe, India, and Australia, Weinman said. It welcomes approaches from advisors with introductions to potential targets, he added.

Packform’s next-step growth plans also include launching a B2C direct model to large corporates targeting their tail spend and launching additional products such as a marketplace specifically for biodegradable plastics under its Packform Green Brand, Weinman said.

Packform was founded in 2019 by serial entrepreneur Weinman, Deloitte Digital founder Peter Williams and packaging business executive Preston Geeting, who remain the majority shareholders, with other investors including Australian fund managers like Regal [ASX:RF1], Wilson Asset Management and Thorney Investment Group, Weinman said.

Packform sees its closest peer as Pleasant Prairie, Wisconsin-based shipping and warehouse supplier Uline but differentiates itself in that it is a 100% online business and provides customised packaging in addition to commodity items through its dealer channel.

Packform, which has some 50 staff in 10 countries and 45 dealers on its platform, has won several awards including two Asia-Pacific Stevie Awards for most innovative technology startup and Global Tech startup of the year.

It was also a finalist in the technology section of this year’s Australian Growth Company Awards for which Mergermarket was the media partner.

Original Source: Packform actively seeking acquisitions and joint ventures ahead of planned IPO, Louise Weirhart, Acuris Mergermarket (an ION group company), 24 October 2022