Each issue of PaperMoney is approximately 500 fact filled pages.
Logout
Click here for Pulp & Paper Radio International
Items just for you
New publication added! Advertising Arguments 2015 book
Free Downloads
Search
My Profile
Login
Management Side
Technical Side
Amcor Announces Acquisition of AGI-Shorewood’s Tobacco Packaging Operations.
Print
Hawthorne, Victoria, Australia 15 February 2013 -- Amcor announces today it has agreed to acquire select printing assets of AGI-Shorewood’s Tobacco Packaging and Specialty Folding Carton Operations for US$114.8 million. The acquired business has plants or assets in each of South Korea, USA, Mexico and China. The acquisition excludes the AGI-Shorewood plant in Smiths Falls, Canada.

The acquisition expands Amcor’s business in the higher growth regions of Asia and Latin America and includes specialty folding carton production assets in the United States. In Mexico it builds on the position established by Amcor following the recent acquisition of Aluprint.

For the 2012 calendar year the acquired business had sales of US$126 million and EBITDA of US$22 million.  The EBITDA purchase multiple is 5.2 times based on the last twelve months of earnings.

Net synergy benefits are anticipated to be approximately US$13 million and the net cash cost to achieve these synergies is expected to be approximately US$20 million. The acquisition is expected to deliver a return on investment of more than 20% by the end of year three.

In South Korea the business has approximately 30% share of this high value add market and supplies major international customers. The plant, built in 2004, is well capitalised and has a strong technology and product innovation focus.

Amcor’s Managing Director and CEO, Mr Ken MacKenzie, said: “This acquisition is aligned with our strategic objective of expanding our position in emerging markets. The attractive purchase multiple and substantial operational cost synergies ensure the acquisition will generate very attractive returns for shareholders.”



Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: