Australian-based multinational packaging company Amcor has announced the acquisition of Plastic Moulders Limited, a rigid plastics business that manufactures containers and closures for the food and personal care markets in North America.
Plastic Moulders, which operates a single plant in Toronto, has established relationships with a number of large multinational customers and has sales of approximately CAD 35 million.
The company brings new technologies including injection moulding and in-mould labelling, which involves embedding the label in the container wall at the same time the container is extruded, thus removing the need for any secondary processes to adhere a label to the container.
Amcor CEO and Managing Director, Ron Delia, said the CAD 38 million acquisition will generate considerable synergies in terms of procurement, manufacturing costs and overhead.
“The Amcor Rigid Plastics business has significant growth opportunities in market segments outside of the traditional non-alcoholic beverage markets. Our strategy to grow this business includes acquiring companies like Plastic Moulders that provide specialised manufacturing capabilities, which will enable Amcor to broaden our product offering for the benefit of current and future customers,” Mr Delia said.
“Total sales into these markets are approximately $500 million inclusive of Plastic Moulders sales, and there are significant opportunities to build on this position with organic growth and further acquisitions. We welcome Plastic Moulders to the Amcor portfolio and are confident that this acquisition will generate strong returns for shareholders.”