Amcor concludes strategic UK deal

Packaging giant Amcor“s acquisitions of two flexible packaging plants in the UK was a “good example of our strategy”, managing director Russell Jones said on 18 March. Amcor paid US$ 30.9 million for…

Packaging giant Amcor“s acquisitions of two flexible packaging plants in the UK was a “good example of our strategy”, managing director Russell Jones said on 18 March. Amcor paid US$ 30.9 million for the plants at Ledbury and Thetford, which had combined sales of US$ 115 million last year and combined assets of US$ 41 million. Jones said that, while the size was “not significant”, he expected consolidation to continue in the flexible packaging area. Amcor has identified three areas in which it would like to keep growing and consolidating the market: flexible packaging, tobacco containers and the PET bottle business. “We want to consolidate on those and this is a good example of our strategy,” Jones said. He was confident the new British plants would quickly return the target of 15%. Jones said the plants were an “excellent strategic fit” with the existing Europe-based business, Amcor Flexibles Europe, and while the consolidation meant fewer suppliers, he was also “more than happy” with the product range. The acquisition would add weight to its presence in market segments such as fresh food, drinks and confectionary packaging, he said. The purchase comes on the back of a huge acquisition and merger spree last July when AFE merged with Danisco Flexible and Akerlund & Rausing. The merged entity is now the market leader in flexible packaging in Europe. Amcor announced a half-year, after-tax profit of US$ 147 million in February, a 3% growth in earnings per share.