Amcor Twinpak-North America Inc. has sold five industrial packaging plants to an investor group to focus on its core businesses in consumer products packaging.
The Montreal-based company announced June 29 that it has sold three coating and laminating operations and two woven polyolefin plants to investors led by Schroder Canadian Buy-Out Fund II. The businesses are profitable, have annual sales of about C$90 million (US$61.2 million) and employ about 400.
Amcor Twinpak did not disclose terms.
Schroder Canadian is one of 25 international venture capital funds managed by Schroder Ventures Ltd., a division of merchant bank Schroders plc of London. Total value of the funds is about US$4 billion.
Schroder Canadian will expand the purchased businesses by internal growth in value-added markets and will aim to boost sales in the United States and Mexico, markets that account for only a third of the businesses' sales, according to Paul Echenberg, president and chief executive officer of Schroders & Associates Canada Inc., a Montreal-based affiliate that advised on the purchase.
Echenberg also indicated Schroder Canadian will look at complementary acquisition opportunities.
Amcor Twinpak's former coating and laminating plants are in Brantford, Ontario; Cap de la Madeleine, Quebec; and Langley, British Columbia.
The operations coat and laminate woven polyolefins and paper for packaging lumber, steel, paper and other industrial products, Amcor Twinpak President James Allen said in a telephone interview.
In addition to polyolefin coatings and laminations, the operations can treat packaging with chemicals such as flame retardants for specialty applications. Schroder Canadian will rename the business Flexia Corp.
The woven polyolefins operation, called Fib-Pak Inc., extrudes, slits and weaves polyolefins. Woven products mainly are sold to outside customers for conversion to intermediate bulk containers.
Fib-Pak sells some of its output to Amcor Twinpak's former coating and laminating facilities and converts some in-house to IBCs.
Allen said Amcor Twinpak will focus on PET packaging, thermoformed packaging, plastic tubes, closures and flexible film packaging for salads and other consumer products. Amcor Twinpak's former industrial packaging units were the only such businesses within Amcor Ltd., its Melbourne, Australia-based parent company.
Other investors in the purchase are Caisse de depot et placement du Quebec and Schroder Ventures International Investment Trust plc.
Amcor Twinpak-North America formerly was known as Twinpak Inc., and Echenberg was president and CEO of Twinpak from 1970-89.
Amcor bought Twinpak in 1989 from paper company Consolidated-Bathurst Inc. Echenberg joined Schroder & Associates in 1996.
Schroder's other major involvement in plastics is the former Akzo Nobel NV global tube and packaging operations.
Late last year, Schroder Ventures Ltd. led a management buyout of the operations after Akzo bought those and other assets of Courtaulds plc.
The tube and packaging operations were renamed Betts Ltd. They include plastic container, laminated tube and closure facilities in Florence, Ky.; Woodstock, Ill.; and Colchester, England; and facilities in China, Indonesia, India and Poland. The injection molding portion makes aerosol caps, inhalers and other containers and delivery devices at plants in Colchester and in Wrexham, Wales.
Schroders plc's origins date back to 1818 when John Henry Schroder founded a merchant bank.
Schroders plc was listed on the London Stock Exchange in 1959.