Amcor has acquired Bella Prima Packaging, an Indonesian flexible packaging business, for A$27m.
Bella Prima has two plants in Jakarta specialising in the shrink sleeve, label and lidding business. Sales in CY2013 were A$30m.
Amcor has one flexibles packaging plant in Indonesia and said the purchase price represents seven times CY2013 EBITDA.
Ken MacKenzie, Amcor’s managing director and CEO, said 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,” he said.
“Given the expected synergy benefits, it is anticipated returns will exceed 20% by year three.”