Amcor completes Souza Cruz’s tobacco packaging operations acquisition in Brazil

2 September 2015 (Last Updated September 2nd, 2015 18:30)

Amcor Tobacco Packaging has completed its previously announced acquisition of Souza Cruz's internal tobacco packaging operations in Brazil for R$96m ($30m).

Amcor Tobacco Packaging has completed its previously announced acquisition of Souza Cruz's internal tobacco packaging operations in Brazil for R$96m ($30m).

The majority of Souza Cruz, whose tobacco packaging operations are located in Cachoeirinha, Rio Grande do Sul, is owned by British American Tobacco.

According to Amcor, the latest investment is backed by a long-term supply contract between the company and Souza Cruz.

"This acquisition adds a third plant to our Latin American footprint, cementing our position as the only truly global packaging supplier for the tobacco industry."

The business is expected to generate revenues of approximately R$200m ($56m) a year.

Amcor Tobacco Packaging president Jerzy Czubak said: "This acquisition adds a third plant to our Latin American footprint, cementing our position as the only truly global packaging supplier for the tobacco industry."

Amcor said that the Brazilian market is the 12th largest tobacco market in the world, and represents 35% of Latin American cigarette consumption.

A division of Amcor, Amcor Tobacco Packaging supplies folding cartons for the tobacco industry and has 23 manufacturing sites in 20 countries across the Americas, Europe, and Asia.

In March, Amcor acquired South African flexible packaging company Nampak Flexibles in a transaction valued at R250m ($22m).

Nampak Flexibles, which generates sales of about R1.1bn ($94m) a year, has extrusion, lamination and conversion capabilities across three plants.