Global packaging giant Amcor has entered into an agreement to acquire Bella Prima Packaging, an Indonesian flexible packaging business for A$27 million, which is seven times Australia-headquartered Amcor’s calendar 2013 earnings before interest, taxation, depreciation and amortisation (EBITDA).

Bella Prima has two plants in Jakarta specialising in the high growth shrink sleeve, label and lidding business. Sales in CY2013 were approximately A$30 million.

Amcor currently has one flexible packaging plant in Indonesia. This acquisition is complementary to the existing operations as it broadens Amcor’s participation strategy with its multinational and local customers as well as adding to the local talent pool.

Amcor’s Managing Director/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% by year three.”