Deal king: Price paid for Amcor site is Victorian real estate record

The packaging giant announced today that it sold its Fairfield paper mill for $120 million, with an expected profit of about $60 million.

According to The Age, it is "believed to be the highest sale price for a Victorian residential site".

The purchaser was a consortium led by real estate investment advisory firm Alpha Investment Partners and a company associated with developer Glenvill Group.

[Related: NSW premier opens $500m Amcor mill]

Amcor also announced today that it had acquired the flexible packaging operations of Jiangsu Shenda Group for ¥350 million ($62.3 million).

Jiangsu has sales of ¥440 million and two plants in the Jiangsu province in eastern China.

Amcor chief executive Ken MacKenzie said China's strong growth in consumer spending made it one of the world's most attractive markets.

"Amcor has a strong and successful position in the Chinese flexible packaging market with nine plants, covering all the key regions and sales of over $400 million," said MacKenzie.

"This acquisition establishes Amcor as the market leader in eastern China, a region that represents approximately 40% of China’s GDP. The business is a strong fit with our existing operations and offers considerable synergy opportunities."

Amcor posted a net profit of $238.3 million on revenue of $6 billion for the six months to 31 December 2012. Net debt was $3.8 billion.

The Melbourne and China deals are subject to regulatory approval.

[LinkedIn: What are the pros and cons of doing business overseas?]

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