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Deal helps Amcor build small customer base

By: Kate Tilley

July 18, 2012

MELBOURNE, AUSTRALIA (July 18, 1:25 p.m. ET) — Melbourne-based global packaging supplier Amcor Ltd. has bought an industrial tape and packaging distributor to build its Australian small and medium-sized (SME) customer base.

Amcor manufactures PET containers for beverages; flexible packaging for the food and healthcare markets; tobacco packaging; and corrugated boxes. The company bought Melbourne-based KMJ Pty. Ltd., trading as Wayne Richardson Sales, on June 28 for an undisclosed amount. 

Wayne Richardson Sales has been an independently-owned Australian company since 1974. It distributes industrial packaging and packaging consumables, including adhesives, abrasives, tape dispensing equipment, stretch film machinery and safety products to SME customers.

Its plastic products include stretch and shrink polyethylene films, polyethylene shrink bags and bin liners, PVC doubled-sided tapes, and polythene tubing, pallet capping and bundle wrap.

Wayne Richardson Sales and its wholly-owned subsidiary, Gaska Tape Australia, are the preferred industrial and commercial adhesive tape suppliers to most of Australia's automotive manufacturers and airlines.

The company's annual sales are about US$51 million and it serves more than 2,700 customers from its eight Australian distribution centers in Melbourne, Shepparton, Albury, Adelaide, Sydney, Newcastle, Brisbane and Perth.

Amcor managing director and CEO Ken MacKenzie said the deal improves the value of Amcor’s existing packaging business and strengthens its market position. "The purchase brings a new and more effective channel to SME packaging customers. The combined business will provide new products as well as additional services and enhanced technical support for customers." The acquisition is expected to deliver returns of more than 20 percent by year three.