Amcor grows with German acquisition

Amcor intends to start integrating its newest acquisition into its global network, after completing the US$ 2.875 billion transaction for PET containers and closure assets of German group Schmalbach-L…

Amcor intends to start integrating its newest acquisition into its global network, after completing the US$ 2.875 billion transaction for PET containers and closure assets of German group Schmalbach-Lubeca. The Schmalbach takeover positions the Australian-based global packager as the number one producer of PET products and a top-five manufacturer of closures globally. The acquisition boosts Amcor“s stable to 51 plants in 20 countries. Managing director Russell Jones said with the completion of the transaction, integration of the businesses could get under way. “The acquisition of Schmalbach-Lubeca“s PET containers and closures operations is consistent with Amcor“s strategy of targeting high-growth markets to become a leading player in these market segments,” Jones said. “We are confident that the combined operations are well positioned for future growth and that the transaction positions the company as a global leader in the packaging industry.” He said the deal also signalled the completion of the sale of Amcor“s 45% interest in Kimberly-Clark Australia (KCA). Amcor acquired Schmalbach“s PET and closures business through issuing shares, raising debt and with funds from the sale of its remaining stake in KCA. Schmalbach is the world“s largest manufacturer of PET plastics containers and is the leader in that field in North America, Europe and South America with 2001 calendar sales of $2.5 billion. Jones said the acquisition would realize US$ 75 million in synergies per annum by year three, with US$ 20 million achieved in the first year.