Australia-headquartered packaging manufacturer Amcor is buying compatriot packaging business Detmold Flexibles for A$50 million. Following the transaction, the business will be integrated with Amcor Flexibles Asia Pacific.

The acquisition is subject to the Australian Competition and Consumer Commission (ACCC) approval and includes two plants operated by Detmold Flexibles in Melbourne that have annual sales of about A$55 million.

Amcor CEO and Managing Director, Ken MacKenzie said: “From a strategic perspective Detmold Flexibles builds on the success of the 2012 Aperio Group acquisition. It enables the Australian flexible business to strengthen their manufacturing centres of excellence with plants focused on specific technologies and end market segments. The acquisition will further improve our customer value proposition in the Australian market by enhancing the ability to invest in both product and process innovation. Given the manufacturing overlap in the businesses there is considerable opportunity for operational synergies and returns are expected to be more than 20%.”