Australian packaging solutions provider Amcor has entered an agreement to acquire Sonoco Products Company’s North American rigid plastics blow moulding operations.
The $280m deal is subject to regulatory approvals in the US.
With six production sites in the US and one in Canada, Sonoco Products Company currently generates annual sales of around $210m and serves various sub-segments in the personal care and specialty food markets.
Once completed, the deal is expected to add around $50m of PBIT to Amcor’s rigid plastics division at the end of the third full year of ownership, which is financial year 2020.
Amcor CEO and managing director Ron Delia said: “Part of our strategy to grow this business includes acquiring specialised manufacturing capabilities which unlock further growth in key segments.
“This acquisition represents the next step change for Amcor in terms of scale and capabilities for specialty container manufacturing.
"Along with providing synergies, the acquired business also brings strong relationships with important new customers, strengthens our product platform and positions this business to grow faster than the overall market.”
With the acquisition, Amcor Rigid Plastics aims to offer more blow moulding and injection technologies, as well as expertise in the production of polyethylene, polypropylene and multi-layer containers.
The company’s diversified products business will also expect to witness total sales of around $750m in the specialty containers segment.
In July, Amcor Flexibles added a new press at its facility in Milwaukee Wisconsin, US, enabling flexographic printing, gravure coating and slitting to occur in a single pass.