MELBOURNE, Australia, Nov. 18, 2013 (Press Release) - Amcor announces today that it has signed an agreement to acquire Detmold Flexibles, a privately-owned Australian flexibles packaging business for $50 million. The business will be part of Amcor Flexibles Asia Pacific.
Detmold Flexibles operates two plants in Melbourne and has sales of approximately $55 million. 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%.
Amcor CEO and Managing Director, Ken MacKenzie said: "From a strategic perspective Detmold Flexibles builds on the success of the 2012 Aperio Group acquisition. It enables the Australian flexibles business to strengthen their manufacturing centres of excellence with plants focussed 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%."
The acquisition is subject to ACCC approval.