Amcor, the world’s largest packaging company, has sold three non-core flexible packaging plants in Cheltenham, Chester Hill and Kirrawee to Integrated Packaging Group (IPG), a privately-owned Australian business, for $22 million.
Amcor stated that these sites were acquired as part of the Aperio acquisition and focused on non-core industrial and agricultural markets.
These plants produce plain and printed polyethylene products which includes printed industrial bags, shrink film, and PVC food films.
IPG CEO John Cerini said “the acquisition of these plants reinforces IPG’s growth strategy in Industrial and Agricultural packaging as well as expanding IPG into printing, converting and PVC Food films.”
According to Cerini “this acquisition will enable IPG to further develop its innovative, cost effective, and environmentally beneficial solutions for our customers in Australia, New Zealand and other global markets including Asia and North America.”
He went on to say that “it gives us additional capabilities in printing, converting and PVC food films which will improve our technical expertise providing opportunities into new sales market segments and gives IPG an excellent platform for future expansion of the business.”
IPG expects that the transaction will be completed by the end of November 2012, which is subject to Australian Competition and Consumer Commission (ACCC) approval.
Amcor said “synergies from the Aperio acquisition are not impacted by the sale and remain at $25 million by year three.”