Packaging giant Amcor is set to acquire South America’s largest flexible packaging business, Alusa – owned by Techpack SA and Nexus Private Equity – in a deal worth US$435m. The company has had its sights on the region since the creation of its Flexibles Americas Business Group in July last year, with growth in both North and South America anticipated for this sector. Amcor’s executive general manager of corporate affairs John Murray told Australian Printer its rationale for the takeover was simple, “From this we become the largest flexible packaging company in South America, and move from a small position to market leader with one acquisition.”
Expansion: Amcor set to acquire Alusa
Alusa will take the Amcor name moving forward. Its integration is expected provide long standing connections with large multinational customers in the region and a sales portfolio of US$375m generated from Alusa’s core business in the supply of flexible packaging for food, personal care and pet food applications. The deal is expected to bring in an additional US$25m, which will see PBIT reach US$65m by the three year mark. Returns on the investment are projected to reach 20 per cent by the end of year five. Amcor CEO Ron Delia comments, “It is pleasing that over a relatively short period of time, our flexible packaging sales in the region will almost double to nearly US$1bn with the acquisition of 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. A large number of Amcor’s multinational customers operate in South America, and this acquisition significantly improves our ability to support their needs and to grow with them in these markets.” Murray says Alusa is ‘well capitalised’. Amcor will take over its four plants based in Chile, Peru, Argentina and Columbia, and also its equipment. He adds, “The four plants in South America were stand-alone business, now they will become part of the Amcor company and will have access to technology and innovation on a global scale. They become part of a much larger global flexibles network.” During its half year results announcement in February, Amcor attributed its financial stability to its recent takeovers and revealed it would continue its worldwide acquisition path throughout 2016. The acquisition is subject to approval by Techpack shareholders and is expected to be finalised in the coming months.
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