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

Image

Core Molding buys CPI Binani assets, adds markets, D-LFT capabilities

March 20, 2015 1:20 pm ET

Core Molding Technologies Inc. is expanding its thermoplastics capabilities with the acquisition of substantially all the assets of CPI Binani Inc.,...    More

Image

Proposed Cardia-Stellar merger labeled 'not fair,' but still 'reasonable'

March 20, 2015 10:34 am ET

If the proposed merger of two Australian bioplastics companies goes ahead, the new company will be called Secos Group Ltd. and have annual sales of...    More

Image

Transilwrap buys Clear Focus, expands in advertising films

March 20, 2015 10:03 am ET

Film extruder Transilwrap Company Inc. has bought Clear Focus Imaging, a manufacturer of printable plastic films for large-scale display advertising...    More

Image

Citadel purchase will nearly double A. Schulman's US sales

March 19, 2015 12:06 pm ET

Materials firm A. Schulman Inc. has kept its buying streak alive with its biggest deal yet — acquiring compounder and composites maker Citadel...    More

Image

Solvay, Ineos to divest some operations as part of Inovyn JV process

March 19, 2015 9:58 am ET

Brussels-based Solvay SA and Ineos Group AG will sell off some of their assets to International Chemical Investors Group SE as part of the move to cre...    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