Amcor Ltd.'s $40 million acquisition of an Aluprint SA de CV tobacco packaging plant in Monterrey, Mexico, is expected to be finalized in early July.
Melbourne-based Amcor is a global packaging supplier, manufacturing PET containers for beverage applications, flexible packaging for the food and health-care markets, tobacco packaging, and corrugated boxes.
Aluprint, based in San Luis Potosí, Mexico, manufactures and sells metallic paper and printed packaging materials. It manufactures folding cartons, micro-corrugated packaging and flexible packaging for tobacco and other consumer-goods companies. It retains its other two manufacturing facilities in San Luis Potosí and Apodaca, Mexico.
Aluprint is a subsidiary of Miami-based Globalpack USA, a portfolio company of New York-based JP Morgan Chase & Co.'s private equity firm One Equity Partners.
The Monterrey plant was built in 2009 at a cost of $40 million. Amcor Managing Director and CEO Ken MacKenzie said the acquisition price represents the book value of assets acquired, including the Monterrey plant, a cylinder engraving operation and working capital. The business has annual sales of $30 million.
The sale is part of Amcor's plan to increase its Latin American presence. At Amcor's general meeting in October, MacKenzie said Amcor had bought an Argentinian tobacco packaging business, which he did not name, that has annual sales of about $16 million.
MacKenzie said the latest deal establishes a domestic presence in Mexico, which is a large and strategically located market for tobacco packaging. “The Aluprint acquisition continues the strategy of expanding our presence in Latin America. Our strong customer relationships, coupled with our market-leading position in North America, provide the opportunity to significantly increase sales on the existing asset base.