Australia’s pre-eminent packaging multi-national, Amcor (AMC) is outlaying more than half a billion dollars to expand its footprint across South America.
The company yesterday revealed that it will effectively double the size of its flexible packaging business in the Americas by acquiring Alusa, the market leader in South America, for $US435 million ($A567 million).
The Alusa acquisition comes three months after Amcor announced plans to buy California-based flexible packaging company Deluxe Packaging for $US45 million ($A60 million) and nearly a year after Amcor created a new Americas flexible packaging unit.
The latest acquisition, which includes Alusa businesses in Chile, in Peru, Argentina and Colombia, will boost Amcor’s annual sales by $US375 million ($A490 million).
Amcor shares rose 30¢ to a record $15.11 during trading on the news, taking gains so far this year more than 11%. The shares closed up nearly 2% at $15.05, a record close for the stock.
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Alusa makes flexible packaging for the food, personal care and pet food markets and has four plants and a broad range of capabilities including film extrusion, flexographic and gravure printing, and lamination.
“With the creation of a new Flexibles Americas business group in July 2015, there was an expectation this business could accelerate growth in both North and South America,” Amcor CEO, Ron Delia said.
“It is pleasing that over a relatively short period of time, our flexible packaging sales in the region will almost double to nearly US$1 billion with the acquisition."
"Alusa, and the recently completed acquisition of Deluxe Packages in the USA. Alusa comes with a strong management team and provides a unique platform in an important growth region."
The acquisition is conditional on approval by Techpack shareholders and regulatory authorities.