Pact Group Holdings Ltd (ASX:PGH) entered into an agreement to acquire Pascoe's Pty Ltd for AUD 51.8 million on February 22, 2017. The consideration includes cash consideration of AUD 40.9 million and contingent consideration of AUD 10.9 million. The consideration represents a multiple of 6.5 times 2016 financial year EBITDA. The agreement contains an earn-out arrangement payable on the delivery of specific financial hurdles for the calendar year ended December 31, 2017. The acquisition will be funded by existing bank debt facilities. Pascoe's generated annual sales of AUD 70 million. The deal is subject to customary conditions and is expected to be completed on February 28, 2017. The deal will be EPS accretive in year one and will meet Pact’s target return hurdle of 20% ROI in year three. Corrs Chambers Westgarth lead by Partner Gaynor Tracey, and supported by Senior Associate Madeleine Kulakauskas, Associate Claire Cahill, Lawyer Hannah Cooper, and Graduate Lawyer Ananya Mittra acted as legal advisor for Pact Group Holdings Ltd. KPMG Australia aced as the due diligence advisor for Pact Group.