Pro-Pac administrators strike going-concern sale to Knoxcorp

Administrators of Pro-Pac Packaging Group have agreed to sell the group’s continuing Australian and New Zealand operations to Knoxcorp, securing a going-concern outcome for most of the packaging manufacturer’s business following its entry into voluntary administration late last year.

Robert Smith and Keith Crawford of McGrathNicol, acting as administrators to more than 20 Pro-Pac entities, have entered into a business sale agreement for the group’s Australian business and assets, excluding the Perfection Packaging division, to Consolidated Packaging Australia Pty Ltd, a subsidiary of Knoxcorp, an Australian investment company led by businessman Jim Knox. Mr Knox previously founded and operated packaging company Cospak, which was sold in 2009 to San Miguel Yamamura Packaging. In announcing the acquisition, Knoxcorp said it intends to continue local manufacturing operations and invest in new machinery to support customers’ supply chains. Completion of the Australian transaction is expected by early March 2026.

A separate agreement has been executed for Pro-Pac’s New Zealand operations, which are being sold to Consolidated Packaging Limited, a New Zealand subsidiary within the Knoxcorp group. That transaction is expected to complete by 30 January 2026.

Both transactions have been structured on a going-concern basis and provide for the transfer of employment for all current employees, with the exception of staff employed in the Perfection Packaging business. The Perfection Packaging operation, based in Dandenong, Victoria, is being wound down separately and is scheduled to close in February 2026. It’s unclear how many of the estimated 500 employees across Australia and New Zealand work for the Perfection Packaging business.

McGrathNicol partner and administrator Rob Smith said the transactions represented a positive outcome for customers, suppliers, and employees of the Pro-Pac group, preserving operating businesses across Australia and New Zealand while providing certainty to key stakeholders during the administration process.