Global packaging supplier Amcor has sold three of its flexible packaging plants to Integrated Packaging Group (IPG) for $22.6 million.
The Australian plants are located in Cheltenham (Victoria), Chester Hill, and Kirrawe, (both New South Wales). These plants produce plain and printed polyethylene products including printed industrial bags, shrink film and PVC food films. Amcor said these sites were acquired as part of the Aperio acquisition and focused on non-core industrial and agricultural markets. Amcor first announced in March the company would acquire Melbourne-based flexible packaging supplier Aperio Group for $252.5 million. The synergies from the Aperio acquisition are not impacted by the sale and remain at $25.6 million by year three, Amcor stated.
IPG, a privately owned business, is said to be one of the largest manufacturing specialists of plastic stretch film and associated equipment in Australia. 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. All employees will be offered employment by IPG.
“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,” Cerini said. “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 to complete the transaction by the end of Nov. 2012. As part of the sale, Amcor will continue to provide certain services to IPG for a period of time. This is being done to allow the seamless transition of these services to IPG, the company stated. IPG will formulate a 100-day plan, which is designed to focus on completing a seamless integration of the businesses, and will spend significant time initially engaging with customers, employees and suppliers to form an ongoing strategy for the business.