Amcor sells three manufacturing plants to Integrated Packaging Group

By Kate Tilley
Correspondent

Published: October 16, 2012 6:00 am ET

Related to this story

Topics Packaging Mergers & Acquisitions Film & Sheet
Companies & Associations

MELBOURNE, AUSTRALIA (Oct. 16, 3:45 a.m. ET) — Integrated Packaging Group Pty Ltd's (IPG) acquisition of three Amcor Ltd.’s Australian flexible packaging plants for A$22 million (US$22.6 million) is likely to be finalized in November, subject to regulatory approval.

Melbourne-based global packaging company Amcor bought the three plants as part of its US$252.5 million acquisition of Melbourne-based flexible packaging supplier Aperio Group Australia Pty. Ltd. The sale was finalized in March.

The plants are in Cheltenham, Victoria; Chester Hill, New South Wales; and Kirrawee, New South Wales. They manufacture plain and printed polyethylene products, including printed industrial bags; shrink film; and PVC food films.

Melbourne-based IPG manufactures and distributes polyethylene stretch film wrap and associated products to the agricultural and industrial markets. IPG bought Amcor's flexible packaging plant in Kewdale, Western Australia, in August 2008.

In a statement, Amcor said the three plants serve non-core industrial and agricultural markets. The sale is subject to approval from the Canberra-based regulator, the Australian Consumer and Competition Commission.

Amcor said the sale will not impact expected synergies from the Aperio acquisition, which will remain at A$25 million (US$25.7 million) by year three.

IPG CEO John Cerini said the acquisition reinforces IPG's growth strategy in industrial and agricultural packaging, allowing it to further grow its Australian, New Zealand, Asian and North American markets.

"It gives us additional capabilities in printing, converting and PVC food films which will improve our technical expertise providing opportunities into new sales market segments and gives IPG an excellent platform for future expansion," Cerini said.

IPG will formulate a 100-day plan to integrate the businesses. To aid the transition, Amcor will continue to provide some services to IPG for an unspecified time. No job cuts are expected, with IPG offering employment to all Amcor employees at the three sites.


Comments

Amcor sells three manufacturing plants to Integrated Packaging Group

By Kate Tilley
Correspondent

Published: October 16, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Dow Chemical sees potential for PE growth in packaging

March 30, 2015 1:17 pm ET

The packaging market continues to provide growth for the polyethylene business of Dow Chemical Co. — which is a good thing, since the firm will ...    More

Image

Sipospack to build new flexible packaging plant in Hungary

March 30, 2015 9:38 am ET

Hungarian flexible packaging producer Sipospack Kft. is investing nearly 3 million euros ($3.2 million) in an expansion at a new site at Sóskút in...    More

Image

Flextronics launches global injection molding, tooling unit

March 26, 2015 4:29 pm ET

Flextronics International Ltd. (Booth S34125) is officially launching Precision Plastics, a global injection tooling and manufacturing unit, as a...    More

Image

Kautex showing off an extrusion blow molding machine at NPE

March 25, 2015 6:00 am ET

After 80 years in business, Kautex Maschinenbau GmbH officials know good old-fashioned word of mouth is often the best way to reach more customers.    More

Image

Fabri-Kal to expand its sustainable packaging with new Idaho plant

March 20, 2015 2:03 pm ET

Thermoformed packaging company Fabri-Kal Corp. plans to tap into Idaho's farming community to expand its sustainable packaging program.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events