Amcor's bid for Constar unsuccessful

By Don Loepp
Editor

By Kate Tilley
Correspondent

Published: February 6, 2014 9:16 pm ET
Updated: February 6, 2014 9:53 pm ET

Related to this story

Topics Mergers & Acquisitions, Packaging, Blow Molding
Companies & Associations Amcor Ltd., Constar International LLC

Amcor Ltd. has been unsuccessful in its bid to buy the North American assets of Constar International Holdings LLC.

In a Feb. 6 auction, Amcor was outbid by another company. An Amcor spokesman told Plastics News he will not name the company, but said its name will be "on the wire" within 24 to 48 hours.

He would not say how much the winning company paid, but said "at the end of the day the nature of an auction is that the winning bid doesn't have to be much more than the losing one.

"At a certain price it no longer fits the criteria. Amcor has a well-defined returns focus for investments and will remain disciplined in its approach to acquisitions," he said.

"Constar went into bankruptcy and part of the process was for liquidators to establish the best possible price."

Amcor announced on Dec. 20 it had entered into an asset purchase agreement with Constar, under which Constar had agreed to sell substantially all its U.S. business to Amcor.

Constar said the transaction with Amcor was subject to higher and better offers and approval of the Bankruptcy Court, as well as other customary closing conditions.

A few weeks after the deal was announced, two other potential bidders emerged: Plastipak Holdings Inc. and CKS Packaging Inc. Both filed objections with the court over the rules Amcor and Constar had set up for the sale.

Industry sources suggest Constar was a relatively small bolt-on acquisition for Amcor, so there is minimal impact on the U.S. blow molding industry.

Hawthorn, Australia-based Amcor announced Feb. 7 local time that "it was not successful in acquiring the North American assets of Constar International Holdings LLC."

Constar had planned to sell most of its assets in two separate auctions, one for its U.S. assets and another for assets or stock of affiliates in the United Kingdom and the Netherlands.

Amcor and Trevose, Pa.-based Constar had originally announced the deal back on Dec. 19. Constar had filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. Amcor was the stalking horse bidder, and the purchase was being supervised by the U.S. Bankruptcy Court in Delaware.

Constar was a pioneer in the PET bottle business, and a few decades ago Constar and Amcor's U.S. predecessor — Johnson Controls Inc. — were the top two blow molders in North America, according to Plastics News' rankings.

Now, however, Amcor is still the No. 1 plastic bottle supplier, with North American sales of US$2.65 billion. According to Amcor, Constar's U.S. business now has six plants and annualized sales of about US$190 million.


Comments

Amcor's bid for Constar unsuccessful

By Don Loepp
Editor

By Kate Tilley
Correspondent

Published: February 6, 2014 9:16 pm ET
Updated: February 6, 2014 9:53 pm ET

Post Your Comments


Back to story


More stories

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Universal Polymer beefing up capabilities through acquisition

July 29, 2014 12:04 pm ET

Universal Polymer & Rubber Ltd. is growing again and adding to its capabilities, this time via another acquisition and a plant expansion.    More

Image

Reynolds considering sale of Closure Systems International unit

July 29, 2014 10:32 am ET

Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.    More

Image

Carbon black supplier Orion begins trading on NYSE

July 29, 2014 11:29 am ET

Orion Engineered Carbons S.a.r.l. has priced the initial public offering of 19.5 million common shares at a price to the public of $18 per share.    More

Image

Evonik sells polyimide foams operation to Boyd

July 29, 2014 10:46 am ET

Modesto, Calif.-based Boyd Corp., a manufacturers of specialty material and sealing agents, has purchased Evonik Industries’ Solimid...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events