Amcor offers to acquire parts of Alcan Packaging

The combined company will be one of the world’s leading packaging companies with significant breadth of expertise, products and services. As at June 2009, Amcor generated A$9.53bn in sales from operations in 34 countries and has 226 sites worldwide, with approximately 21,000 employees. The parts of Alcan Packaging that Amcor has offered to acquire would add approximately US$4.1 billion in sales and 14,000 employees across 80 plants in 28 countries.

The proposed acquisition will also support Amcor’s stated objective of growing in its strategic business areas of flexible packaging and folding cartons packaging. It reaffirms the company’s commitment to the packaging industry.

According to Amcor MD and CEO, Ken MacKenzie: “We believe that this acquisition will bring customers of Amcor and Alcan Packaging even greater value through broader offerings and enhanced customer service. Critically, beyond the hard assets, the combined company will draw on the best people from both organisations to drive these improvements.”

Amcor is in a solid financial position as a result of ‘The Way Forward’, Amcor’s get fit programme initiated in 2005. This programme was designed to improve core competencies across a range of disciplines and to create a more focused portfolio of businesses. Improvements in capital discipline and cost controls have ensured that the company is in a good position to take advantage of acquisition opportunities.

“While these are difficult economic times globally, Amcor is in a solid financial position,” said MacKenzie. “We made the tough decisions several years ago to reshape our company through focus and discipline. This acquisition is a clear fit with our strategic growth plans, building greater shareholder value by expanding our business while obtaining the economies of scale that comes with an opportunity such as this.

“Growing our businesses in a sustainable manner was always our stated intention, and we’re pleased to have entered into this agreement. We’re committed to becoming a leader in the global packaging industry.”

The acquisition is subject to regulatory approvals as well as consultation with European Works Councils. Closing of the acquisition isn’t expected to occur for several months. Until this time, Amcor and Alcan Packaging will continue to operate as separately run companies.

Source: Amcor