Amcor to buy Indonesian flexible packaging business

Amcor has announced that it will acquire Indonesian flexible packaging business Bella Prima for $27 million. The purchase price is seven times the target's calendar 2013 earnings before interest, taxation, depreciation and amortisation (EBITDA).

Bella Prima has two plants in Jakarta specialising in the high growth shrink sleeve, label and lidding business. Sales in the 2013 calendar year were approximately $30 million. Amcor already has one flexible packaging business in Indonesia. The company said in a statement the acquisition is complementary to its existing operations in Indonesia as it broadens the group’s participation strategy with its multinational and local customers as well as adding to the local talent pool.

Amcor’s Managing Director and CEO Ken MacKenzie said, “Indonesia is an attractive market for flexible packaging given its rising per capita income and changing retail formats. "The Bella Prima acquisition gives Amcor the opportunity to broaden its product portfolio in attractive end market segments and deepen our relationships with key customers. "Given the expected synergy benefits, it is anticipated returns will exceed 20 per cent by year three."

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