Tekni-Plex to buy three Amcor production facilities for $215m

23 April 2019 (Last Updated April 23rd, 2019 12:28)

Packaging materials manufacturer Tekni-Plex has entered a definitive purchase agreement to buy three production facilities from Australian packaging company Amcor’s Flexible Packaging business unit for a cash consideration of $215m.

Tekni-Plex to buy three Amcor production facilities for $215m
Amcor produces medical device packaging substrates, heat-seal and cold-seal coated paper and films at the three plants. Credit: Amcor Limited.

Packaging materials manufacturer Tekni-Plex has entered a definitive purchase agreement to buy three production facilities from Australian packaging company Amcor’s Flexible Packaging business unit for a cash consideration of $215m.

The three facilities are located in Madison and Milwaukee in Wisconsin, US, and Ashland in Massachusetts, US.

Amcor produces sterilisable medical device packaging substrates such as coated and uncoated Tyvek, along with heat-seal and cold-seal coated paper and films, medical grade laminates as well as die-cut lids and labels at the three plants.

Commenting on the deal, Tekni-Plex president and CEO Paul Young said: “The acquisition expands our complex packaging solution portfolio for medical device manufacturers, many of whom are our customers today.

“Tekni-Plex’s medical products businesses – Colorite, Natvar and Dunn – have been supplying these same customers globally for decades, and we will continue to deliver on their quality and service expectations.

“The acquisition of these three plants also brings us 150 highly qualified and experienced employees who form the backbone of the business.”

“The acquisition of these three plants also brings us 150 highly qualified and experienced employees who form the backbone of the business. We are happy to welcome them to the Tekni team of 3,000 strong across the world.”

The transaction is dependent on approval by the US Department of Justice (DOJ), and the closing of the proposed $6.8bn merger between Amcor and flexible packaging major Bemis.

According to Amcor, the company and Bemis are in advanced discussions with Staff of the Antitrust Division of the US DOJ to resolve certain specific antitrust concerns associated with the merger.

Earlier this month, Amcor received antitrust clearance from the Brazilian Administrative Council for Economic Defense (CADE) with no remedial action for the merger, which is expected to close on 15 May.