Amcor, one of the world’s largest manufacturers of plastic packaging for the food, beverage, spirits, personal/home care, and healthcare industries, has announced that it will acquire Zhongshan Tian Cai Packaging Company, a Chinese flexible packaging business for RMB 211 million.
“China is one of the most attractive markets for flexible packaging globally. The Tian Cai acquisition is a strong fit with our existing operations and provides an opportunity to further expand Amcor’s customer base and product offering in the South China region,” said Amcor’s Managing Director and CEO, Ken MacKenzie in a media release.
“Amcor has a strong and successful position in the Chinese flexible packaging market with ten operations covering all key regions, and annualised sales of approximately US$500
Tian Cai primarily produces flexible packaging products for the food, beverage and pharmaceutical end markets and supplies leading local and multinational customers. The company has one plant in Zhongshan with annual sales amounting to around RMB 280 million. Amcor also has a plant in Zhongshan and two other flexible packaging plants in the region.
With this acquisition, Amcor will broaden its capabilities in the South China region to include pharmaceutical packaging.
The company said that the purchase price represents 7.1 times EBITDA.
Headquartered in Australia, Amcor currently employs 27,000 people across the world and has operations across 43 countries. It uses flexible and rigid plastics packaging to create packaging solutions.