Amcor to acquire Sonoco’s blow moulding business for US$280 mn

Amcor Rigid Plastics, the US subsidiary of Australia-headquartered packaging giant Amcor, has entered into an agreement to acquire the assets of Sonoco’s Global Plastic blow moulding business in North America for US$280 million. The transaction is subject to regulatory approvals in the US.

Sonoco manufactures custom rigid plastic bottles, jars, overcaps and closures for the food, beverage, pharmaceutical, health and beauty, and personal care markets in seven plants located in the US and Canada, with 850 employees.

According to Jack Sanders, Sonoco President, the decision to sell the blow moUlding operations was made to focus the company’s consumer packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming rigid plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.

“This acquisition will directly support our strategy to meet our customers’ growing needs,” said Mike Schmitt, Amcor Rigid Plastics President. “The combined assets and talents of Amcor Rigid Plastics and Sonoco will allow us to meet strategic customer growth objectives while expanding our extrusion and injection molding assets and adding advanced decorating capabilities.”

Since 2010, Amcor Rigid Plastics has been building a strong position in the speciality container segment through its Diversified Products business unit. With an increased focus on healthcare, food, and home and personal care markets, Amcor Rigid Plastics has developed several in-house capabilities and acquired specialized technologies to help customers grow.

Until the transaction is closed, Amcor Rigid Plastics and Sonoco will continue to operate as two separate companies.

Founded in 1899, Sonoco has annualised net sales of approximately US$5 billion, and 21,000 employees working in more than 330 operations in 34 countries, serving some of the world’s best known brands in some 85 nations.