Amcor to acquire Australian flexible packaging company for US$50 million

Amcor announced that it has signed an agreement to acquire Detmold Flexibles, a privately-owned Australian flexible packaging business for US$50 million. The business will be part of Amcor Flexibles Asia Pacific.

Detmold Flexibles operates two plants in Melbourne and has sales of approximately US$55 million. The deal is subject to Australian Competition and Consumer Commission (ACCC) approval.

Amcor CEO and Managing Director, Ken MacKenzie said, "From a strategic perspective Detmold Flexibles builds on the success of the 2012 Aperio Group acquisition. It enables the Australian flexibles business to strengthen their manufacturing centers of excellence with plants focused on specific technologies and end market segments."

"The acquisition will further improve our customer value proposition in the Australian market by enhancing the ability to invest in both product and process innovation. Given the manufacturing overlap in the businesses there is considerable opportunity for operational synergies and returns are expected to be more than 20%." He adds.