US-based flexible packaging products maker Bemis Company has inked a pact for the acquisition of South American rigid plastic packaging business of Brazilian firm Emplal Participa.
The transaction, contingent upon customary closing conditions and regulatory review, is likely to close by the end of this year. The financial terms of the deal have not been disclosed.
The rigid packaging operations of Emplal Participa, a manufacturer of plastic packaging for food and consumer applications with two units in Brazil, posted sales worth $75m in 2014.
With an annual turnover of around $4bn, Bemis caters to food, consumer products and healthcare sectors with its flexible packaging.
Bemis Company president and CEO William F. Austen said: "This transaction will support Bemis' growth strategy to expand in South American markets that fit our strengths and capabilities.
"Emplal's rigid packaging operations are state-of-the art facilities that will complement our existing South American business. We expect this acquisition to be modestly accretive to earnings per share in 2016."
Established in 1858 and based out of Wisconsin, Bemis specializes in polymer chemistry, film extrusion, coating and laminating, printing, and converting. It employs around 17,000 people across the world.
