HONG KONG (Aug. 2, 3:55 p.m. ET) — Bemis Co. Inc. has acquired Mayor Packaging Enterprises Ltd., a Hong Kong-based manufacturer of consumer and specialty flexible packaging. Terms of the deal were not disclosed.
“This acquisition supports our strategy to enhance our presence in the Asia-Pacific region,” Henry Theisen, Bemis president and CEO, said in an Aug. 2 news release.
Mayor's high-barrier flexible-packaging operation in Dongguan, China, is a state-of-the art facility, Theisen said, that serves food and consumer-product companies around the world.
About 30 percent of Neenah, Wis.-based Bemis' business is outside the U.S., with 20 percent in South America, Europe accounting for about 10 percent, and “a sliver” in Asia, Melanie Miller, Bemis vice president and treasurer, said in a telephone interview.
Bemis and its subsidiaries operate three flexible packaging plants in the Asia-Pacific region: two focused on medical-device packaging and located in Selangor, Malaysia, and Suzhou, China; and one focused on meat packaging in Wellington, New Zealand.
“Mayor represents a tremendous opportunity in terms of packaging for a variety of food items in the growing Asian markets: snack food, confectionery, frozen foods, retort packaging. There's a lot of excitement about this acquisition,” Miller said.
Mayor Managing Director Eddy Ho did not respond to a request for comment, but the privately owned firm's website reported 2008 sales of $40 million. The company, which started in 1968 making polyethylene bags, supplies flexible packaging for a range of industries, including ready-meal packaging, beverages, detergents and agrochemicals.
The Dongguan factory opened in 2007, according to the website.
About 70 percent of Mayor's sales are in China, and it has sales offices throughout the country, including Beijing, Shanghai, Chengdu, Guangzhou and Qingdao Province. It exports to the U.S., United Kingdom, Mexico, South Africa, Russia, Australia, New Zealand, Korea, Japan, Thailand and elsewhere in Southeast Asia.
Mayor said it meets world standards with state-of-the-art Japanese printing and laminating equipment, and underground waste-disposal system in the factory, and various integrated quality systems. It uses only toluene-free printing inks, it said.
The Mayor acquisition comes at a time of growth for Bemis. Bemis said July 8 that one of its units finished a tender offer to buy 38 million shares of its São Paulo subsidiary Dixie Toga SA for $90 million. The purchase means Bemis has increased its stake from 86 percent to 99 percent of Dixie Toga's shares.
For the second quarter of 2011, Bemis reported profit of $56 million on sales of $1.4 billion, compared with profit of $62 million on sales of $1.3 billion for the year-ago period.
The company had sales of $4.8 billion in 2010 and employs 20,000.