The acquired business has sales of approximately RMB 440m and two plants in the Jiangsu province in Eastern China. Two thirds of its sales are to the pharmaceutical, snacks and culinary end markets.
Following the acquisition, Amcor will be the market leader in Eastern China with a strong position in film manufacturing and conversion.
Amcor’s managing director and CEO, Ken MacKenzie, said: “Continued strong growth in consumer spending makes China one of the most attractive markets globally. Amcor has a strong and successful position in the Chinese flexible packaging market, with nine plants covering all the key regions and sales of over A$400m.
“This acquisition establishes Amcor as the market leader in Eastern China, a region that represents approximately 40% of China’s GDP. The business is a strong fit with our existing operations and offers considerable synergy opportunities.”
The agreement is subject to regulatory and other usual conditions and is expected to close in the coming months.
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