Australian rigid and flexible packaging products provider Amcor has closed acquisition of plastic blow molding operations of the US-based packaging firm Sonoco Products for $280m.
As part of the deal signed earlier, Amcor has purchased Sonoco Specialty Containers, which makes containers personal care and food and beverage markets, in order to strengthen its business.
Employing 850 people, Sonoco Specialty Containers operates six production facilities in the US and one in Canada. It generates annual sales of approximately $210m.
Amcor said that the acquisition represents the next step change for the company in terms of scale and capabilities for specialty container manufacturing.
Sonoco president and CEO Jack Sanders said that the sale of blow molding operations was in line with its plan to focus on consumer packaging portfolio.
The firm also intends to provide resources to further expand its businesses, including flexible packaging, thermoforming plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
Amcor earlier said that the acquisition is expected to significantly enhance its 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.
Amcor CEO and managing director Ron Delia earlier 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.”
