Amcor Rigid Plastics has signed an asset purchase agreement with plastic containers producer and supplier Constar International to purchase the company's US business assets.
The transaction is expected to be completed during the first quarter of 2014. Constar operates six plants in the US and is currently continuing operations and paying employees as before.
The transaction is being undertaken through a court-supervised process under Section 363 of the US bankruptcy code. In a move to conclude the transaction process, Constar and its subsidiaries have filed for Chapter 11 bankruptcy protection in the District of Delaware.
Constar CEO Louis Imbrogno, Jr said that the transaction would help the company leverage the financial and other resources of Amcor in continuing to provide better products and services.
"We are very excited for our employees and customers and believe this transaction creates a stable and extremely viable long-term partner for our customers and vendors," added Imbrogno.
Constar also produces and supplies plastic bottles, jars and preforms for food and drinks markets. The company is also considering selling its European business operations.
Image: Amcor PET bottles. Photo: courtesy of Amcor.