Global supplier of folding cartons Amcor Tobacco Packaging has completed the purchase of Souza Cruz’s internal tobacco packaging business based in Cachoeirinha, Rio Grande do Sul, in Brazil.
This business is expected to achieve annual sales of around $56m.
Souza Cruz is a majority-owned by British American Tobacco. The investment is said to be backed by a long-term supply contract between Amcor and Souza Cruz.
Amcor Tobacco Packaging president Jerzy Czubak said: "This acquisition adds a third plant to our Latin American footprint, cementing our position as the only truly global packaging supplier for the tobacco industry."
"We are extremely happy to welcome our new team members, who bring with them great knowledge and experience from the industry... Together with our global innovation platforms and exceptional operational capabilities, we are excited by the opportunities our growing footprint presents our customers."
The Brazilian market is estimated to represent 35% of Latin American cigarette consumption and regarded as the 12th largest tobacco market across the world.
Amcor had recently acquired Packaging India (PIPL) from Essel Propack, a publicly listed specialty packaging company, in a deal worth $26.4m.
Armed with three plants in the northern and southern region of India, PIPL makes flexible packaging products for the food and personal care markets.
Amcor Tobacco Packaging, an arm of Amcor, boasts of 23 manufacturing sites in 20 countries across the Americas, Europe, and Asia.
Image: Tobacco leaves being sold in a market. Photo: courtesy of Africa/Freedigitalphotos.net.
