Amcor to acquire Detmold Flexibles for $50m

By Jenny Eagle

- Last updated on GMT

Amcor announced acquisition.
Amcor announced acquisition.

Related tags Marketing

Amcor has signed an agreement to acquire Detmold Flexibles, a privately-owned Australian flexibles packaging business for $50m.

The business will be part of Amcor Flexibles Asia Pacific.

Ken MacKenzie, CEO and managing director, Amcor said the deal means the company can invest in products and processing. 

From a strategic perspective Detmold Flexibles builds on the success of the 2012 Aperio Group acquisition​,” he said.

It enables the Australian flexibles business to strengthen its manufacturing centres of excellence with plants focused on specific technologies and end market segments​.

The acquisition will further improve our customer value proposition in the Australian market by enhancing the ability to invest in both product and process innovation​. 

Given the manufacturing overlap in the businesses there is considerable opportunity for operational synergies and returns are expected to be more than 20%​.”

Detmold Flexibles operates two plants in Melbourne and has sales of approximately $55m.

The acquisition price represents an EBITDA multiple of 6.6 times and after the realisation of synergy benefits return on funds employed are expected to be more than 20%.

The acquisition is subject to ACCC approval.

Related topics Processing & Packaging

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