Multinational packaging company Amcor has drafted an agreement to acquire giant South American flexible packaging business Alusa in a A$567m deal.
Alusa is the largest flexible packaging manufacturer in Chile and Peru and operates plants in Colombia and Argentina.
The packaging firm, which generates sales of around A$482m, also comprises three other major divisions; Peruplast in Peru, Aluflex in Argentina and Flexa in Colombia, and is owned by parent company Techpack.
According to Amcor chief executive Ron Delia, the acquisition was made to augment the company’s growth in North and South America.
“With the creation of a new Flexible Americas Business Group in July last year, there was an expectation this business could accelerate growth in both North and South America,” says Delia.
“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.”
[Related: Amcor's dip in revenue]
Amcor estimates the monetary value of the acquisition over a three year period to be approximately $65m, and says the return on cash is expected to have only reached 15 per cent of its potential at that time.
Amcor’ corporate affairs manager John Murray says the deal will not affect operations in Australia, and is poised to strengthen Amcor’s global expansion strategy.
Murray says the deal was born out of a ‘long gestation period’ to focus growth efforts on a high-consumption market in South America, and will have no effect on the Australian market market ‘as there is very little trade flow between Australia and South America’ he says.
Completion of the acquisition is subject to approval by shareholders of parent group Techpack, and is expected to be finalised within the next few months.
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