Amcor acquires Chinese flexible packaging company

Amcor has reached an agreement to acquire Zhongshan Tian Cai Packaging Company, a Chinese flexible packaging business for RMB 211 million. The purchase price represents 7.1 times EBITDA.

Tian Cai has one plant located in Zhongshan and has generated RMB 280 million per year. The business produces flexible packaging products for the food, beverage and pharmaceutical end markets and supplies local and multinational customers.

“China is one of the most
 attractive markets for flexible packaging globally,” says Ken MacKenzie, Amcor’s managing director and CEO. “The Tian Cai acquisition is a strong fit
with our existing operations and provides an opportunity to further expand Amcor’s
customer base and product offering in the South China region.”

Amcor has three flexible packaging plants, including a location in Zhongshan. This acquisition will complement the existing
food and beverage business and broaden Amcor’s capabilities within the South China region to include pharmaceutical packaging.

“Amcor has a strong and successful position in the Chinese flexible packaging market with ten operations covering all key regions and annualized sales of approximately US$500 million,” adds Mackenzie.