Amcor acquires flexible packaging operations of China's Jiangsu Shenda Group for RMB350 million
US-based packaging group Amcor announced that it has acquired the flexible packaging operations of Jiangsu Shenda Group in China for RMB350 million.
According to Amcor, the acquired business has sales of approximately RMB440 million and two plants in the Jiangsu province in Eastern China. Two thirds of its sales are to the pharmaceutical, snacks and culinary end markets. It is a strong fit with Amcor's exiting plant in Jiangsu province and enables sharing of overheads, optimization of production across the sites and operating improvements. These opportunities are expected to deliver cost synergy benefits of more than 5% of sales.
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$400 million."
"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." He added.
The agreement is subject to regulatory and other usual conditions and is expected to close in the coming months.
