ACI: San Miguel interest in plastics division

Philippines-based San Miguel may be interested in bidding for the plastic packaging assets of the ACI packaging group, putting it into competition against Australian packaging majors Visy and Amcor.

Philippines-based San Miguel may be interested in bidding for the plastic packaging assets of the ACI packaging group, putting it into competition against Australian packaging majors Visy and Amcor. In 2003, ACI“s plastic packaging revenue was about USD 220 million while EBITDA was just over USD 20 million. A sale has been in prospect since early August 2003 when ABN Amro was appointed by ACI“s United States parent, Owens-Illinois. Bids for the division are due by Christmas 2003. Net assets are USD 150 million. It is believed the division will probably sell in a range between USD 150 million and USD 200 million suggesting an EBITDA multiple of between 7.5 and 10. Amcor is said to be interested in parts of the portfolio but has strict investment criteria including 15% return on funds invested. ACI Plastics Packaging division group finance director Greg Ridder said 2 December 2003 that sale proceeds would be used to retire debt.