Amcor acquires Deluxe Packages for US$45 mn

Kick-starting the new year off, Australian global packaging giant Amcor is purchasing Deluxe Packages, a privately owned flexible packaging business for US$45 million. The acquired business will become part of Amcor's newly formed Flexibles Americas business group.

Deluxe operates one well-invested manufacturing plant with attractive technologies, capabilities and highly skilled co-workers in Yuba City, in Northern California, says Amcor. The business generates revenues of approximately US$42 million providing high-performance flexible packaging products to customers in the fresh food and snack segments.

Amcor CEO/Managing Director, Ron Delia said: "North America is an attractive region for flexible packaging and this acquisition represents an excellent opportunity to accelerate profitable growth.

With the addition of Deluxe Packages, Amcor's customer value proposition in the specialty food packaging segment is strengthened with a combined east and west coast footprint. This acquisition will enhance growth in priority segments and generate strong returns."

Amcor has been building up its assets in the US. Last year, Amcor Rigid Plastics USA purchased the manufacturing assets and intellectual property of Eco-Group., a privately held preform manufacturing operation with four manufacturing sites in the US. Amcor Rigid Plastics has also purchased a minority equity interest in EnKon, a woman-owned business enterprise affiliate of Eco-Groupe.