Amcor is inking a contract to acquire Detmold Flexibles, a privately-owned Australian packaging business, for $50m.

Detmold Group operates Australian manufacturing sites in Melbourne and Adelaide

The Melbourne-headquartered Detmold Packaging Group operates plants in Melbourne and Adelaide, with access to eight factories throughout the Asia Pacific region. It says its customer base includes Cadbury, Nestle, Mission Foods, CSR, Goodman Fielder and Fonterra – which help to deliver sales of around $55m. Amcor says the purchased Detmold will become part of its Flexibles Asia Pacific division, joining previous acquisition Aperio Group to manufacture and source a range of food and pharmaceutical packaging solutions for the region. Ken MacKenzie, CEO and managing director with Amcor, says, “From a strategic perspective Detmold Flexibles builds on the success of the 2012 Aperio Group acquisition. It enables the Australian flexibles business to strengthen its manufacturing centres of excellence with plants focused on specific technologies and end market segments. “The acquisition will further improve our customer value proposition in the Australian market by enhancing the ability to invest in both product and process innovation. Given the manufacturing overlap in the businesses there is considerable opportunity for operational synergies and returns are expected to be more than 20 per cent.” Amcor says the $50m price tag represents an EBITDA multiple of 6.6 times. The deal now awaits ACCC approval.

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