Amcor has announced it’s entered into an agreement to acquire Bella Prima Packaging, an Indonesian flexible packaging business, for $27 million.
Bella Prima has two plants in Jakarta specialising in the high growth shrink sleeve, label and lidding businesses and sales for calendar year 2013 were approximately $30 million.
Amcor has one flexibles packaging plant in Indonesia and this new acquisition forms part of the company’s plans to broaden its product portfolio, said Ken Mackenzie, managing director and CEO of Amcor.
“Indonesia is an attractive market for flexible packaging given its rising per capita income and changing retail formats. The Bella Prima acquisition gives Amcor the opportunity to broaden its product portfolio in attractive end market segments and deepen our relationships with key customers. Given the expected synergy benefits, it is anticipated returns will exceed 20 percent by year three.”
Earlier this year the ACCC announced it would not oppose Amcor’s acquisition of Detmold Group’s Australian flexible packaging operation. Detmold competes with Amcor in the supply of value-added flexible packaging, particularly to manufacturers of fast moving consumer goods.
“The ACCC concluded that the acquisition of Detmold’s Australian flexible packaging operations would be unlikely to substantially lessen competition,” ACCC chairman Rod Sims said.