Amcor announces today, the acquisition of privately owned Encon’s preform manufacturing business.
The consideration payable will be US$55 million and the acquired business will form part of Amcor's Rigid Plastics business group.
Encon generates revenues of approximately US$110 million servicing both Amcor's existing customers and new customers within the beverage, food and household segments.
The business operates from four manufacturing sites, producing the majority of preforms from one large scale plant located in Dayton, Ohio. The business is well capitalised and this acquisition is expected to reduce future capital requirements for Amcor's existing Rigid Plastics business.
Amcor CEO and Managing Director, Ron Delia said: "This acquisition provides an excellent opportunity to acquire a well capitalised business at an attractive price. Given the manufacturing overlap, the acquisition will deliver considerable operating synergies and generate strong returns for shareholders."