Amcor Buys Chinese Flexible Packaging Company
Amcor Limited, supplier of a broad range of rigid & flexible packaging products into the food, beverage, healthcare, home and personal care and tobacco packaging industries, announces an agreement to acquire Zhongshan Tian Cai Packaging Company, a Chinese flexible packaging business for RMB 211 million. The purchase price represents 7.1 times EBITDA.
Tian Cai has one plant located in Zhongshan and sales of approximately RMB 280 million per annum. The business produces flexible packaging products for the food, beverage and pharmaceutical end markets and supplies leading local and multinational customers.
Amcor is currently the market leader in Southern China, with three flexibles packaging plants, including one plant in Zhongshan. This acquisition will complement the existing food and beverage business and broaden Amcor’s capabilities within the South China region to include pharmaceutical packaging. Amcor’s Managing Director and CEO, Ken MacKenzie said: “China is one of the most attractive markets for flexible packaging globally. Amcor has a strong and successful position in the Chinese flexible packaging market with ten operations covering all key regions, and annualised sales of approximately USD 500 million.”
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