Amcor buys Chinese flexible packaging maker; completes Sonoco acquisition

Australian packaging giant Amcor has expanded its flexible packaging platform in the Northern China region, with the US$28 million acquisition of Hebei Qite Packing Co. Ltd. (Qite).

Qite has one plant located in Hebei, North China and the business generates sales of over US$28 million from the sale of flexible packaging products to large domestic customers within the dairy and food segments.

Amcor currently has a total of eleven flexible packaging plants in China, including two plants in close proximity to Qite in Northern China. Once fully integrated, Amcor says it will have an even stronger platform to grow the business in this region. Inclusive of synergy benefits this acquisition will generate strong returns for shareholders within three years.

Amcor’s Managing Director and CEO, Ron Delia said, “Amcor continues to have substantial opportunities to grow our flexible packaging business in the Asian region.”

He added that globally and especially within Asia, China is a very attractive growth market for flexible packaging. “This acquisition will enhance our already attractive platform for growth with new and existing customers in the important Northern region.”

The acquisition remains subject to regulatory approvals.

Amcor has also completed the acquisition of Sonoco Products Company rigid plastics blow moulding operations, first announced in September.

Sonoco has six production facilities in the US and one in Canada and generates annual sales of US$210 million.

Amcor says this acquisition represents the next step change in terms of scale and capabilities for speciality container manufacturing. “As well as providing synergies, the acquired business brings strong relationships with important new customers, strengthens our product platform and positions the business to grow faster than the overall market,” it said.

(PRA)