The investment is supported by a long-term supply contract between Amcor and Souza Cruz. The business is expected to achieve annual sales of approximately BRL 200 million (US$ 63 million).
The Brazilian market represents 35% of Latin American cigarette consumption and is the 12th largest tobacco market in the world.
“This acquisition is aligned with our strategic objective of growing our packaging business in Latin America,” said Ken MacKenzie, Amcor CEO and managing director. “It represents an excellent opportunity to support an important global customer by extending access to Amcor’s global innovation platforms and strong operational capabilities.”
Closing of the acquisition is conditional upon approval from the Brazilian Anti-trust Authority (CADE).