Australia’s Amcor acquires Plastic Moulders in Toronto, Canada

15 May 2016 (Last Updated May 15th, 2016 18:30)

Australia-based packaging company Amcor has acquired Toronto-based Plastic Moulders for a sum of C$38m ($30m).

Australia-based packaging company Amcor has acquired Toronto-based Plastic Moulders for a sum of C$38m ($30m).

Plastic Moulders manufactures containers and closures for food, home and personal care markets in North America.

The company also provides design, engineering, moulding and assembly services for consumer packaged goods customers in the health, beauty, food, pharmaceutical and industrial markets.

"The Amcor Rigid Plastics business has significant growth opportunities in market segments outside of the traditional non-alcoholic beverage markets."

It operates a single plant in Toronto, Canada, and has sales of around C$35m ($27m).

The deal is expected to create huge synergies in terms of procurement, manufacturing costs and overhead for Amcor.

Amcor CEO and managing director Ron Delia said: "The Amcor Rigid Plastics business has significant growth opportunities in market segments outside of the traditional non-alcoholic beverage markets.

"Our strategy to grow this business includes acquiring companies like Plastic Moulders that provide specialised manufacturing capabilities, which will enable Amcor to broaden our product offering for the benefit of current and future customers.

"Total sales into these markets are approximately $500m inclusive of Plastic Moulders sales, and there are significant opportunities to build on this position with organic growth and further acquisitions."

Amcor Rigid Plastics, a subsidiary of Amcor, currently has 61 facilities in 12 countries.

Last month, Amcor entered an agreement to acquire South American flexible packaging manufacturer Alusa for $435m.