UPDATED: Bemis Co. Inc.'s expected acquisition of the rigid packaging division of Emplal Participações S.A. is expected to add to the company's bottom line starting next year.
The deal includes two facilities in Brazil and annual net sales of about $75 million in 2014, Neenah, Wis.-based Bemis said.
The sites are located in located in Três Lagoas and Cabo de Santo Agostinho, according to Erin Winters, director of investor relations at Bemis.
“This acquisition supports our strategy to grow sales in our target end markets and will complement or strengths and capabilities in the region,” Winters said in an email response to questions.
Products made by Emplal at the two sites include rigid plastic containers “for a variety of food and household goods,” Winters said. A total of about 850 people work at the two locations.
“This transaction will support Bemis' growth strategy to expand in South American markets that fit our strengths and capabilities,” Bemis CEO William F. Austen said in a statement. “Emplal's rigid packaging operations are state-of-the art facilities that will complement our existing South American business.”
Terms of the deal were not revealed.
“The transaction is planned to close by the end of this year, and with our strong management team in the region, I anticipate a smooth integration of the two businesses such that the transaction will be accretive to earnings in 2016,” Austen said on a conference call to discuss second quarter results on July 23.
Bemis reported second quarter profit of $65.6 million, or 67 cents per diluted share, on sales of $1.03 billion. That compares with profit of $65.8 million, or 65 cents per diluted share, on sales of $1.1 billion during last year's second quarter.
The company also lowered its full-year adjusted diluted earnings per share to a range of $2.52 to $2.62, down from a range of $2.52 to $2.67 per share. The decrease reflects the impact of currency exchanges on the global packaging company's business.