Amcor acquires Indonesian flexible-packaging business

Amcor has announced plans to acquire Indonesian flexible packaging business Bella Prima Packaging for $27 million.

Bella Prima has two plants in Jakarta that specialise in the high-growth shrink sleeve, label and lidding business. The company’s 2013 sales were approximately $30 million.

“Indonesia is an attractive market for flexible packaging given its rising per capita income and changing retail formats,” said Ken MacKenzie, Amcor’s Managing Director and CEO.

“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.”

The acquisition is complementary to Amcor’s existing flexible packaging plant in Indonesia, as it broadens the company’s participation strategy with it multinational and local customers as well as adding to the local talent pool, the company says.