MELBOURNE, AUSTRALIA — Packaging giant Amcor Ltd. has entered into an agreement to buy an Indonesian flexible packaging business, Jakarta-based Bella Prima Packaging Ltd., for A$27 million (US$25.2 million).
Bella Prima has two plants in Jakarta specializing in heat-shrinkable plastic film, PVC shrinkable tubes, multi-color shrink labels, tamper-evident seals for dairy, food, cosmetic, pharmaceutical and household products, nylon laminated vacuum packaging bags, oriented polypropylene wraparound labels and food-grade tandem laminated lids.
An Amcor news release said Bella Prima sales in the year to Dec. 31, 2013, were about A$30 million (US$28 million).
Amcor already has a flexibles packaging plant in Jakarta which manufactures products for the food, household, personal care and farmer end markets. Amcor investor relations manager Tracey Whitehead told Plastics News the plant's sales are about US$40 million a year.
Amcor's release said the acquisition complements the existing operations because it “broadens Amcor's participation strategy with its multinational and local customers” and adds to the domestic talent pool.
Whitehead said it is a “clean acquisition” and Amcor will continue to operate three separate plants.
Amcor's managing director and CEO Ken MacKenzie said: “Indonesia is an attractive market for flexible packaging given its rising per capita income and changing retail formats.
“The Bella Prima acquisition gives Amcor the opportunity to broaden its product portfolio in attractive end-market segments and deepen our relationships with key customers. Given the expected synergy benefits, it is anticipated returns will exceed 20 percent by year three.”
Amcor says the purchase price is seven times Bella's earnings before income depreciation and amortization for 2013.
