Amcor to acquire Chinese packaging firm for $34.04m

Packaging solution providers Amcor has entered into an agreement to acquire Chinese flexible packaging business Zhongshan Tian Cai Packaging Company for $34.04m (RMB211m). The company said that the purchase price represents 7.1 times EBITDA.

Tian Cai primarily produces packaging products for the food, beverage and pharmaceutical end markets and supplies leading local and multinational customers. The Chinese company which has recorded sales of approximately $45.17m (RMB280m) per annum has one plant located in Zhongshan. Currently Amcor has three flexibles packaging plants in Southern China where it is considered to be the market leader. It also has one plant in Zhongshan.

Amcor said in a statement: "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 $500m."

Headquartered in Australia, Amcor currently employs 27,000 people across the world and has operations across 43 countries. It uses flexibles and rigid plastics packaging to create packaging solutions.

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