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Amcor Acquires Detmold Flexibles


Acquires privately-owned Australian flexibles packaging business for $50 million

Amcor announced that it has signed an agreement to acquire Detmold Flexibles, a privately-owned Australian flexibles packaging business for $50 million. The business will be part of Amcor Flexibles Asia Pacific. The acquisition is subject to ACCC approval.

Detmold Flexibles operates two plants in Melbourne and has sales of approximately $55 million. The acquisition price represents an EBITDA multiple of 6.6 times, and after the realization of synergy benefits, return on funds employed are expected to be more than 20%.

"From a strategic perspective, Detmold Flexibles builds on the success of the 2012 Aperio Group acquisition,” Ken MacKenzie, Amcor CEO and managing director, said. “It enables the Australian flexibles business to strengthen their manufacturing centres of excellence with plants focussed on specific technologies and end market segments.

"The acquisition will further improve our customer value proposition in the Australian market by enhancing the ability to invest in both product and process innovation,” MacKenzie added. “Given the manufacturing overlap in the businesses, there is considerable opportunity for operational synergies and returns are expected to be more than 20%."