Amcor eyes film expansion with B-Pack Due takeover

By Rory Harrington

- Last updated on GMT

Related tags Film Amcor

Amcor has acquired cast polypropylene (CPP) producer B-Pack Due for €43m as apart of a strategic move to expand its film output.

The Italy-based company, which posted sales of €43m last year, manufactures films for high performance applications in the laminated food packaging, medical and pet food markets.

Amcor managing director and CEO, Ken MacKenzie said: “This acquisition is an important step in the overall film strategy for the flexibles business.”

He added that B-Pack Due has a number of specialised products and unique process know-how.

“This acquisition is complementary to our existing operations as Amcor currently does not have a large position making these films,” said the CEO.

Exclusive supply deal

As part of the take over, Amcor revealed it had also entered into an exclusive supply deal with Colines S.p.A, a major producer of extrusion lines, and existing supplier to B-Pack Due.

Amcor said the exclusive deal covered large capacity lines and provides it with “protected access to a world leading CPP manufacturing technology that will serve as a platform for anticipated further expansion in CPP films”.

Prior to the buy-out, Amcor purchased around a third of B-Pack’s output.

MacKenzie estimated that the acquisition price for B-Pack Due of 4.9 times EBITDA would enable Amcor to realize a very strong return on its investment.

The transaction is the latest in a number of deals that has seen Amcor become one of the leading global packaging companies. After completing the takeover of Alcan in February 2010 for just under US$2bn, the company bought Ball Plastics in August for US$280m.

Related topics Processing & packaging

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