Amcor Offers to Acquire Parts of Alcan Packaging
The proposed acquisition will also support Amcor’s stated objective of growing in its strategic business areas of flexible packaging and folding cartons packaging.
17 Aug 2009 Amcor has offered to acquire parts of Alcan Packaging for US$2025 million from Rio Tinto. The Alcan Packaging businesses which Amcor has agreed to acquire include: Alcan Packaging Global Pharmaceuticals, Alcan Packaging Food Europe, Alcan Packaging Food Asia and Alcan Packaging Global Tobacco.
The combined company will be one of the world’s leading packaging companies with significant breadth of expertise, products and services. As at June 2009, Amcor generated AU$9.53 billion in sales from operations in 34 countries and has 226 sites worldwide, with approximately 21,000 employees. The parts of Alcan Packaging that Amcor has offered to acquire would add approximately US$4.1 billion in sales and 14,000 employees across 80 plants in 28 countries.
The proposed acquisition will also support Amcor’s stated objective of growing in its strategic business areas of flexible packaging and folding cartons packaging. It reaffirms the company’s commitment to the packaging industry.
According to Amcor Managing Director and Chief Executive Officer, Ken MacKenzie, “We believe that this acquisition will bring customers of both Amcor and Alcan Packaging even greater value through broader offerings and enhanced customer service. Critically, beyond the hard assets, the combined company will draw on the best people from both organisations to drive these improvements.”
Amcor is in a solid financial position as a result of “The Way Forward”, Amcor’s get-fit program initiated in 2005. This program was designed to improve core competencies across a range of disciplines and to create a more focused portfolio of businesses. Improvements in capital discipline and cost controls have ensured that the company is in a good position to take advantage of acquisition opportunities.
“While these are difficult economic times globally, Amcor is in a solid financial position,” said Mr. MacKenzie. “We made the tough decisions several years ago to reshape our company through focus and discipline. This acquisition is a clear fit with our strategic growth plans, building greater shareholder value by expanding our business whilst obtaining the economies of scale that comes with an opportunity such as this.”
“Growing our businesses in a sustainable manner was always our stated intention and we are pleased to have entered into this agreement. We are committed to becoming a leader in the global packaging industry,” said Mr. MacKenzie.
The acquisition is subject to regulatory approvals as well as consultation with European Works Councils. Closing of the acquisition is not expected to occur for several months. Until this time, both Amcor and Alcan Packaging will continue to operate as separately run companies.
