Packaging giant Amcor has agreed to buy South America-based flexible packaging business Alusa for $US435 million ($A568.70 million).
Alusa is the largest flexible packaging manufacturer in Chile and Peru, and a leading player in Colombia and Argentina, with a plant in each of these four countries. It has long standing relationships with several large multinational and regional customers.
The company generates annual sales of about $US375 million from the supply of flexible packaging for food, personal care and pet food products.
Amcor, which acquired US-based Deluxe Packages earlier this year, said the Alusa acquisition will help the group nearly double its flexible packaging sales in the Americas region to nearly $US1 billion in a short period of time.
"A large number of Amcor's multinational customers operate in South America, and this acquisition significantly improves our ability to support their needs and to grow with them in these markets," Amcor chief executive Ron Delia said.
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The Alusa acquisition will generate synergy benefits of around $US25 million, with profit before interest and tax (PBIT) expected at $US65 million after three years, Amcor said.
