Amcor: Acquisition of Chinese flex pack producer

AUSTRALIA Amcor announced 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. According to own statement, 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. The Tian Cai acquisition is a strong fit with our existing operations and provides an opportunity to further expand Amcor’s customer base and product offering in the South China region. “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.”