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Asia Pacific: Amcor buys Indonesian flexible packaging company for US$25.3M

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Amcor says it has entered into an agreement to acquire Bella Prima Packaging, an Indonesian flexible packaging business for A$27 million (US$25.3 million).

It adds the purchase price represents seven times reported in calendar year (CY) 2013, earnings before interest, taxes, depreciation, and amortization.

Bella Prima has two plants in Jakarta, Indonesia specializing in the shrink sleeve, label and lidding businesses.

Its sales in CY2013 were approximately A$30 million (US$28.1 million).

Amcor currently has one flexibles packaging plant in Indonesia.

“Indonesia is an attractive market for flexible packaging given its rising per capita income and changing retail formats,” said Amcor’s MD and CEO, Ken MacKenzie.

“The Bella Prima acquisition gives Amcor the opportunity to broaden its product portfolio in attractive end market segments and deepen our relationships with key customers.”

“Given the expected synergy benefits, it is anticipated returns will exceed 20% by year three.”