Wayne, Pa.-based Tekni-Plex Inc. is buying three manufacturing plants from Amcor Ltd.'s Flexible Packaging business unit for $215 million to broaden its portfolio of sterilizable medical device packaging.
The sites in Milwaukee and Madison, Wis., and Ashland, Mass., produce packaging substrates, such as coated and uncoated Tyvek, heat-seal and cold-seal coated paper and films, medical grade laminates, and die-cut lids and labels.
Amcor reached the deal with Tekni-Plex to resolve anti-trust concerns raised in the United States over the proposed $6.8 billion all-stock merger between parent company Amcor and Bemis Co. Inc. The Amcor-Bemis merger will create a company with about $13 billion in annual sales.
Bemis is based in Neenah, Wis., and Amcor is headquartered in Melbourne, Australia.
Tekni-Plex's purchase of the three Amcor plants will mark its 11th acquisition in five years. That deal is pending approval by the U.S. Department of Justice and the closing of the Amcor-Bemis merger.
The three plants that Tekni-Plex is acquiring employ 150, who will be retained, and have been serving some common customers.
"The acquisition expands our complex packaging solution portfolio for medical device manufacturers, many of whom are our customers today. Tekni-Plex's medical products businesses — Colorite, Natvar and Dunn — have been supplying these same customers globally for decades, and we will continue to deliver on their quality and service expectations," Tekni-Plex CEO Paul Young said in a news release.
With estimated film and sheet sales of $90 million, Tekni-Plex ranks No. 68 among similar North American manufacturers, according to Plastics News' latest ranking.