Amcor strengthens US foothold with Deluxe Packages acquisition

3 January 2016 (Last Updated January 3rd, 2016 18:30)

Australian packaging firm Amcor has expanded its portfolio in the US by acquiring privately owned flexible packaging unit Deluxe Packages for $45m.

Australian packaging firm Amcor has expanded its portfolio in the US by acquiring privately owned flexible packaging unit Deluxe Packages for $45m.

The new acquisition will be operating as a part of Amcor's new Flexibles Americas business group.

Amcor CEO and managing director Ron Delia said: "North America is an attractive region for flexible packaging and this acquisition represents an excellent opportunity to accelerate profitable growth.

"This acquisition will enhance growth in priority segments and generate strong returns."

"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.

"This acquisition will enhance growth in priority segments and generate strong returns."

Deluxe Package operates a manufacturing facility in Yuba City, California, US, which produces flexible packaging solutions for the fresh food and snack industries, generating company revenues of around $42m.

Last October, Amcor acquired US-based preform manufacturer Encon for $55m to strengthen its rigid plastics business.

Encon produces polyethylene-terephthalate preforms at its four manufacturing centres in the US, and currently generates around $110m for Amcor by serving its customers through beverage, food and household business units.