Amcor has reached an agreement to purchase US packaging firm Sonoco’s rigid plastics blow molding operations for US$280m ($375).
The purchase includes seven manufacturing facilities in the US and Canada, where 850 employees produce packaging for the personal care and food and beverage markets. Jack Sanders, chief executive at Sonoco, says the sale of the rigid plastics business comes after the company decided to pull back operations, and further expand targeted growth businesses, including flexible packaging.
Amcor says the acquisition will boost its current product offering by adding complementary capabilities and technologies, including blow molding and injection technologies. it adds that it will also provide expertise in producing polyethylene, polypropylene and multi-layer containers.
Ron Delia, chief executive at Amcor, says, “The Amcor Rigid Plastics business has significant growth opportunities, including in segments outside of the traditional non-alcoholic beverage markets. Part of our strategy to grow this business includes acquiring specialised manufacturing capabilities which unlock further growth in key segments.
“Along with providing synergies, the acquired business also brings strong relationships with important new customers, strengthens our product platform and positions this business to grow faster than the overall market.”
The sale is subject to regulatory approvals in the US.