Australian packaging giant Amcor will expand its presence in the US after acquiring California-based flexible packaging firm Deluxe Packages for $61 million ($US45m).
Deluxe operates a manufacturing plant in Yuba City in Northern California and provides flexible packaging products in the fresh food and snack segments, with annual revenue of about $57 million ($US42m). The privately owned business will become part of Amcor's newly-formed Flexibles Americas business group.
“North America is an attractive region for flexible packaging and this acquisition represents an excellent opportunity to accelerate profitable growth," said Amcor managing director Ron Delia.
“With the addition of Deluxe Packages, Amcor’s customer value proposition in the speciality food packaging segment is strengthened with a combined east and west coast footprint," Delia said. "This acquisition will enhance growth in priority segments and generate strong returns.”
Over the past year, Amcor has completed acquisitions in South Africa, Brazil, China and India, as well as opening new plants in the Philippines and Indonesia.