MELBOURNE, AUSTRALIA (Oct. 16, 3:45 a.m. ET) — Integrated Packaging Group Pty Ltd's (IPG) acquisition of three Amcor Ltd.'s Australian flexible packaging plants for A$22 million (US$22.6 million) is likely to be finalized in November, subject to regulatory approval.
Melbourne-based global packaging company Amcor bought the three plants as part of its US$252.5 million acquisition of Melbourne-based flexible packaging supplier Aperio Group Australia Pty. Ltd. The sale was finalized in March.
The plants are in Cheltenham, Victoria; Chester Hill, New South Wales; and Kirrawee, New South Wales. They manufacture plain and printed polyethylene products, including printed industrial bags; shrink film; and PVC food films.
Melbourne-based IPG manufactures and distributes polyethylene stretch film wrap and associated products to the agricultural and industrial markets. IPG bought Amcor's flexible packaging plant in Kewdale, Western Australia, in August 2008.
In a statement, Amcor said the three plants serve non-core industrial and agricultural markets. The sale is subject to approval from the Canberra-based regulator, the Australian Consumer and Competition Commission.
Amcor said the sale will not impact expected synergies from the Aperio acquisition, which will remain at A$25 million (US$25.7 million) by year three.
IPG CEO John Cerini said the acquisition reinforces IPG's growth strategy in industrial and agricultural packaging, allowing it to further grow its Australian, New Zealand, Asian and North American markets.
"It gives us additional capabilities in printing, converting and PVC food films which will improve our technical expertise providing opportunities into new sales market segments and gives IPG an excellent platform for future expansion," Cerini said.
IPG will formulate a 100-day plan to integrate the businesses. To aid the transition, Amcor will continue to provide some services to IPG for an unspecified time. No job cuts are expected, with IPG offering employment to all Amcor employees at the three sites.