Deluxe is a privately-owned flexible packaging business in Yuba City, Northern California. Customers include Sun-Maid raisons and prunes, Red Vines sugar free licorice and El Monterey Burritos.
Amcor’s growth in the North American market
Deluxe generates revenues of approximately $42m providing packaging to customers in the fresh food and snack segments.
Ron Delia, CEO/MD, Amcor said North America is an attractive region for flexible packaging and it hopes to accelerate profitable growth as part of this acquisition.
“With the addition of Deluxe Packages, Amcor's customer value proposition in the specialty food packaging segment is strengthened with a combined east and west coast footprint,” he said.
“This acquisition will enhance growth in priority segments and generate strong returns."
Amcor announced its Flexibles Europe and Americas business will be divided into two new groups - Flexibles Americas and Flexibles Europe, Middle East and Africa in June last year.
Opportunities in Latin America
The geographic based structure means each of the Flexibles business groups can focus on their respective regions to accelerate profitable growth.
The Flexibles Americas business will focus on accelerating Amcor’s growth in the North American market and pursuing opportunities in Latin America, regions where Amcor’s market share is less than 5%.
The Flexibles Europe, Middle East and Africa business will focus on growth driven by innovation, cost and efficiency improvements as well as opportunities in emerging markets.
Tom Cochran, former VP Flexibles with responsibility for the medical, extrusion and Americas based businesses, is now president, Flexibles Americas.