Plastic and paper packaging manufacturing giant Amcor, announced that it has sold three non-core flexible packaging plants in Cheltenham, Chester Hill and Kirrawee to Integrated Packaging Group (IPG), Australia’s largest specialist manufacturer and distributor of stretch film wrap and associated products, for A$22 million.
These plants manufacture plain and printed polyethylene products which include printed industrial bags, shrink film, and PVC food films.
This new acquisition will give IPG an excellent platform for future expansion, as well as provide additional capabilities in printing, converting and PVC food films, which will improve the company’s technical expertise providing opportunities into new sales market segments.
“The acquisition of these plants reinforces IPG’s growth strategy in Industrial and Agricultural packaging as well as expanding IPG into printing, converting and PVC Food films,” John Cerini IPG CEO said.
According to Cerini “this acquisition will enable IPG to further develop its innovative, cost effective, and environmentally beneficial solutions for our customers in Australia, New Zealand and other global markets including Asia and North America.”.
Amcor stated that these three sites were acquired as part of the Aperio acquisition and focused on non-core industrial and agricultural markets.
The sale will not impact expected synergies from the Aperio acquisition, which will remain at A$25 million by year three, Amcor said.
IPG will formulate a 100-day plan which is designed to focus on completing a seamless integration of the businesses.
There will be no redundancies, and IPG will offer employment to all Amcor employees at the three sites.
The sale transaction is likely to be finalised by the end of this November, which is subject to Australian Competition and Consumer Commission (ACCC) approval.
The business will remain trading as Integrated Packaging.