Packaging powerhouse Amcor Ltd. is pushing deeper into both flexibles and South America with its latest acquisition.
A US$435 million deal for Alusa brings South America's largest flexible packaging business into the Hawthorn, Australia-based company's fold.
Alusa includes four plants in Chile, Peru, Argentina and Colombia and has been owned by Techpack SA and Nexus Private Equity. Annual sales are US$375 million.
Amcor's latest move further bolsters the company's push into flexible packaging in the Americas.
It follows January's acquisition of Deluxe Packages of Yuba City, Calif., for US$45 million.
“With the creation of a new Flexibles Americas business group in July 2015, there was an expectation this business could accelerate growth in both North and South America,” CEO Ron Delia said in a statement. “It is pleasing that over a relatively short period of time, or flexible packaging sales in the region will almost double to US$1 billion with the acquisition of Alusa, and the recently completed acquisition of Deluxe Packages.”
The newly acquired company operates under different names in different countries: Alusa in Chile, Peruplast in Peru, Aluflex in Argentina and Flexa in Colombia.
Acquiring Alusa is part of a strategy by Amcor to be with its customers around the globe. “A large number of Amcor's multinational customers operate in South America, and this acquisition significantly improves our ability to support their needs and grow with them in these markets,” Delia said.
Alusa has “a broad range of capabilities including film extrusion, flexographic and gravure printing and lamination.”
Amcor calls Alusa the largest flexible packaging maker and supplier in both Chile and Peru, and a “leading participant” in Colombia and Argentina. Markets include food, personal care and pet food.
Amcor expects to create savings of about US$25 million through the acquisition and profit before interest and tax of $65 million by the end of the third year after the deal closes. Amcor is paying 8.5 times profit before interest, tax, depreciation and amortization.
The four plants join an existing Amcor flexible plant in Brazil, which the company said serves the healthcare market.
Techpack is listed on the Santiago stock exchange, so the deal needs shareholder approval as well as regulatory approval, Amcor said.