Packaging manufacturer Amcor has announced an agreement to acquire South America’s largest flexible packaging business, Alusa, for $435 million.
Alusa, which incorporates operations in Chile, Peru, Argentina and Colombia, is owned jointly by Techpack and Nexus Private Equity. The business operates four plants and has a range of capabilities including film extrusion, flexographic and gravure printing and lamination, Amcor said, with the leading position as a manufacturer and supplier in the Chilean and Peruvian marketplaces. The purchase price is equivalent to 8.5 times pre-tax profit, Australian-headquartered Amcor added.
The company said that it expects combined pre-tax profit to reach $65 million by the end of year three, driven by approximately $25 million of synergy benefits and growth in its underlying markets, while scalability and further opportunities for growth could lead to a return on investment of 20% by the end of year five.
Amcor CEO and managing director Ron Delia said: “With the creation of a new Flexibles Americas Business Group in July 2015, there was an expectation this business could accelerate growth in both North and South America. It is pleasing that over a relatively short period of time, our flexible packaging sales in the region will almost double to nearly $1 billion 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.
“Along with our leadership positions in Europe and Asia, Amcor’s customer value proposition will substantially improve with a strong presence in South America. A truly global product offering differentiates Amcor in the flexible packaging marketplace, positioning us as a partner of choice for customers.”
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