Global packaging company Amcor has announced an agreement to acquire Australia-based Aperio Group for $238m.
Amcor said the acquisition is a strategic addition to its flexible packaging business in Asia Pacific, which will now be able to supply from an extensive footprint in Asia.
The acquisition is set to add 13 sites to the existing 21 sites of Amcor's Flexibles Asia Pacific Business Group, which is expected to generate a turnover of about A$1.2bn ($1.2bn) from its 34 plants across Asia Pacific, post acquisition.
The purchase is expected to boost Amcor's earnings before interest, taxation, depreciation and amortisation (EBITDA) by $40m, putting it on a purchase multiple of six times.
Net synergy benefits and the net cash cost to achieve the synergies is expected to be about A$25m ($26m).
According to Amcor, the purchase is expected to deliver more than 20% return on investment by the third year after the acquisition, including capital spending synergies.
The acquisition, for which funding will be from existing facilities, will deliver benefits to customers in Australia, New Zealand and Thailand.
The transaction is subject to regulatory and other usual conditions, including Australian Competition and Consumer Commission (ACCC) approval, which intends to make a final decision on 29 March 2012.
Image: The acquisition will add 13 sites to the existing 21 sites of Amcor's Flexibles Asia Pacific Business Group. Photo: Amcor