01.07.2013

Amcor Announces China Flexible Packaging Acquisition

Amcor announced an agreement to acquire the flexible packaging operations of Jiangsu Shenda Group for RMB350m. The purchase price represents 8.0 times CY2012 EBITDA. Returns, measured as EBIT to funds employed, are expected to be over 20% by CY2016, underpinned by cost synergies and continued strong organic growth in the Chinese market.

The acquired business has sales of approximately RMB440m and two plants in the Jiangsu province in Eastern China. Two thirds of its sales are to the pharmaceutical, snacks and culinary end markets. Following the acquisition the company will be the market leader in Eastern China with a strong position in both film manufacturing and conversion. The agreement is subject to regulatory and other usual conditions and is expected to close in the coming months. 


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