Packaging solution provider Amcor has agreed to acquire Chinese flexible packaging business Zhongshan Tian Cai Packaging, in a deal worth RMB211m ($34.04m).
An agreement to this effect was signed between both companies.
The company said that the purchase price represents 7.1 times EBITDA.
Tian Cai currently operates one plant in Zhongshan and generates RMB280m ($45.17m) in sales annually.
It produces flexible packaging products for the food, beverage and pharmaceutical end markets, as well as local and multinational customers.
Amcor managing director and CEO Ken MacKenzie said: "China is one of the most attractive markets for flexible packaging globally.
"The Tian Cai acquisition is a strong fit with our existing operations and provides an opportunity to further expand Amcor's customer base and product offering in the south China region.
"Amcor has a strong and successful position in the Chinese flexible packaging market with ten operations covering all key regions, and annualised sales of approximately $500m."
Earlier in October, Amcor's subsidiary Amcor Flexibles Asia Pacific announced plans to build a multi-million-dollar flexible packaging plant in the Philippines that is expected to become operational in 2016.
Amcor Flexibles Asia Pacific president Ralf K. Wunderlich said: "Emerging Asia remains an important focus for Amcor Flexibles, and with 38 plants in eight countries today, our presence in the Asia Pacific region will continue to grow both organically and through acquisitions.
"Our growth is supported by a solid foundation of delivering high-quality, safe and innovative packaging."
Image: Tian Cai offers flexible packaging products for the food, beverage and pharmaceutical end markets. Photo: courtesy of Mister GC / FreeDigitalPhotos.net.