Amcor has made another bolt-on acquisition, this time of Indonesian flexible packaging company, Bella Prima.
The AU$27 million purchase price represents 7 times CY2013 earnings before interest tax depreciation and amortisation. Its sales in CY2013 were approximately A$30 million.
Bella Prima has two plants in Jakarta and specialises in making shrink-sleeves, labels and lids.
Amcor currently has one flexibles packaging plant in Indonesia. This new acquisition is complementary to the existing operations as it broadens Amcor’s participation strategy with its multinational and local customers as well as adding to the local talent pool.
"Indonesia is an attractive market for flexible packaging given its rising per capita income and changing retail formats," Amcor chief executive, Ken MacKenzie, stated.
"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. Given the expected synergy benefits, it is anticipated returns will exceed 20% by year three.”
Earlier in the year MacKenzie stated that Amcor had the capacity to spend as much as $2 billion on acquisitions and was looking at about 20 potential deals. Historically, Amcor has made four or five acquisitions every year.
These include:
US AGI-Shorewood for AU$112 million in 2013.
Australian Aperio Group for AU$254 million in 2012.
Alcan Packaging (from Rio Tinto0 for $AU2.13 billion in 2009.
