Australian packaging company Amcor has signed an agreement to acquire the North American plastic blow molding operations of US-based packaging firm Sonoco Products for $280m.
Under terms of the deal, Amcor will acquire Sonoco Specialty Containers, which makes containers personal care and food and beverage markets, in order to strengthen its business.
Sonoco Specialty Containers, which generates annual sales of approximately $210m, operates six production sites in the US and one in Canada. It employs 850 people.
Amcor CEO and managing director Ron Delia said: "The Amcor Rigid Plastics business has significant growth opportunities, including in segments outside of the traditional non-alcoholic beverage markets.
“Part of our strategy to grow this business includes acquiring specialized manufacturing capabilities which unlock further growth in key segments.”
Amcor said that the acquisition of blow molding operations represents the next step change in terms of scale and capabilities for specialty container manufacturing.
Delia added: “Along with providing synergies, the acquired business also brings strong relationships with important new customers, strengthens our product platform and positions this business to grow faster than the overall market.”
The deal is subject to regulatory approvals in the US.
The acquisition is also expected to significantly enhance Amcor's product offering by adding complementary capabilities and technologies which include extrusion blow molding and injection technologies, expertise in producing polyethylene, polypropylene and multi-layer containers, as well as additional decorating capabilities. .
Sonoco president and CEO Jack Sanders said that the sale is part of the company plans to focus on consumer packaging portfolio.
The company also intends to provide resources to further expand its targeted growth businesses, which include flexible packaging, thermoforming rigid plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
